Trend Indication by no. of buyers and sellers of a Call/Put

[vikram4trades]

Hi,

I am new to options trade (been trying only paper trading since options are high risk/high reward)

I read somewhere, the ratio of buyers to sellers of a Call or Put indicates whether traders expect the market to go up or go down.
eg. If the market is at 8714, and we look at 8700 call data.

if no of buyers are more it means more people are expecting it to go up

if no of sellers are more, it means more people are expecting it to go down.


Please correct me if I am wrong, and provide more insights, if any...

thanks in advance

 

[badarivt]

Please go through HealthRaj posts to understand better