Sizzle Index- This would be Great!

Want to know when a move is shaping up? Maybe there is a precursor to earnings reports?

Options volume is best viewed in the context of other indicators. For instance, a jump in volume that coincides with a big up or down price move may be an indication of strength in the direction of the change. It’s fitting, then, that large percentage price increases that are accompanied by thin trading volume are less likely to indicate market direction with any staying power. In fact, they may indicate that a reversal is taking shape.
So if you see a stock with a Sizzle Index of 5.00, that indicates its current daily options volume is five times that of its daily average options volume. A Sizzle Index of 0.50 indicates current volume at half of its average, and so on.

When tracking options volume, you’ll want to discern whether the crowd is taking action—buying or selling—in call options as well as put options. It’s also important to be able to track down unusual options volume when it occurs, because it could hint at where the underlying stock might go.

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