+ Market Tide +
++ Daily Aggregated Premium and Volume Indicator +
++ 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. +
+ ++ Example: If $15,000 in calls are transacted at the ask price and + $10,000 at the bid price, the aggregated call + premium is: +
+$15,000 - $10,000 = $5,000
++ Example: If $10,000 in puts are transacted at the ask price and + $20,000 at the bid price, the aggregated put + premium is: +
+$10,000 - $20,000 = -$10,000
++ 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. +
+ ++ Indicators of Bearish Sentiment +
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+
- + Aggregated call premium decreases rapidly. + +
- + Aggregated put premium increases rapidly. + +
+ Volume is calculated as the difference between aggregated call and + put volumes. This method uses the same principles as premium + calculations. +
+ ++ Example: If 10,000 more calls and 5,000 more puts are transacted + at the ask compared to the bid, the aggregated volume is: +
+10,000 - 5,000 = 5,000
++ Since not all options are priced equally, premium must be + considered alongside volume for a clearer picture. +
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