Options have gained tremendous popularity because traders can risk less and make more.
The problem with purchasing options: one must be correct in their assumption on direction, time and volatility. Thus, since options are depreciating assets with fixed maturities, one of the best ways to make consistent returns from purchasing options is to have access to timely insights, like unusual option signals or an options scanner.
Trading On The News
When it comes to the market, time is the regulator of opportunity. However, without access to the same insights institutional investors have, how does one quickly act on emerging market opportunities? Well, look no further: Benzinga Pro is the one-stop-shop for investing based on financials, news, charting and order flow.
One of Pro’s most sought after tools in the Options Signals Scanner feature, which alerts traders to price or volume related events in real-time, such as price spikes, unusual options activity, block trades, halts, opening gaps and more.
Image of the Benzinga Pro Unusual Activity Monitor.
The Options Signals data can be filtered by asset class, sector, security, types of trades, quantity, market cap, float, financial ratios and more.
In addition, traders can quickly derive option order flow context and conviction via Benzinga’s one-sentence Why Is It Moving (WIIM) insights.
Examples Of Options Signals Scanner Data In Action
In the image above, one trader made a bearish bet on Advanced Micro Devices Inc AMD. The order was filled as a Sweep, meaning it was executed across multiple exchanges, typically a high-conviction bet. In another trade, an investor bought PowerShares QQQ Trust QQQ call options above the asking price.
Option order flow is a sentiment analysis indicator that helps gauge directional bets. Typically, activity at a certain strike near the bid points to selling, while activity near the ask points to buying.
Orders above the ask are considered to be high-conviction trades, too, since they are executed at a price that exceeds the current market mid-price. In the QQQ example, despite market uncertainty, one large investor was willing to overpay for upside exposure in the Nasdaq.
So, if a Benzinga Pro user is alerted to very active call buying through the options signal scanner, they can quickly follow along with the unusual activity, using options to risk less and make more.
Rinse And Repeat: Making Money With Pro
“Benzinga Pro has completely changed how I find and utilize information. The squawk button, tied in with the Movers and Newsfeed, to my custom watchlists, has given me back hours in my day," said Bill Brown, a Benzinga Pro user.
Benzinga Pro’s enhanced market news and research functionality, allows users to receive, digest, and act on insights, quickly. With a team of full-time analysts, users are among the first to know why a stock is moving.
“Honestly, the most amazing platform I’ve been using since I’ve started day trading. I love how fast the news gets updated, so I don’t have to go searching for more sources,” said Jason McNeir. “Kept me out of Genius Brands International Inc GNUS when it dropped from $1.40 to $0.70 in 30 seconds due to a reverse split.”
Using Pro’s chat feature, one other user, @THE_STEEN suggested the platform allowed him the opportunity to profit from market moves while working full time.
Image of Benzinga Pro Testimonial.
Pro helps with options trading, too, according to one other BZ Pro user:
Image of Benzinga Pro Testimonial.
Recap: Benzinga Pro, Profitable Investing Are Synonymous
With a focus on timely, easy-to-digest insights, Benzinga increases market transparency and provides users access to an edge: time.
Though the odds are stacked against short-term investors, with knowledge of pertinent catalysts and actionable insights ahead of others, Benzinga Pro users can better time the market when trading today’s volatility.
To learn more about timely insights with Benzinga Pro, please visit https://pro.benzinga.com?afmc=7u.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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