This indicator measures the daily aggregated premium and volume of option trades. It calculates the difference between the value of - options transacted at or near the ask price and those transacted - at or near the bid price. + options transacted at or near the ask + price and those transacted at or near the + bid price.
- Example: If $15,000 in calls are transacted at the ask price and - $10,000 at the bid price, the aggregated call + Example: If $15,000 in calls are transacted at the ask + price and $10,000 at the + bid + price, the aggregated call premium is: @@ -70,8 +77,12 @@
- Example: If $10,000 in puts are transacted at the ask price and - $20,000 at the bid price, the aggregated put + Example: If $10,000 in puts are transacted at the ask + price and $20,000 at the + bid + price, the aggregated put premium is: @@ -80,10 +91,13 @@
- More calls bought at the ask suggest bullish sentiment, while more - puts bought at the ask suggest bearish sentiment. If both lines - are close, the sentiment is neutral. Diverging trends indicate - increasing bullish or bearish sentiment. + More calls bought at the ask + suggest bullish sentiment, while more puts bought at the + ask suggest bearish sentiment. + If both lines are close, the sentiment is neutral. Diverging trends + indicate increasing bullish or bearish sentiment.
Example: If 10,000 more calls and 5,000 more puts are transacted - at the ask compared to the bid, the aggregated volume is: + at the ask compared + to the bid, the + aggregated volume is:
10,000 - 5,000 = 5,000