InvestorQ : What does the option chain tell me about deep OTM calls and deep OTM puts?
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What does the option chain tell me about deep OTM calls and deep OTM puts?

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3 years ago
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This is normally a very major give away for a stock which is about to see sharp price movements. Normally, before a major positive announcement you can see some gradual accumulation happening in deep out of the money calls. On the other hand, when a stock is about to crash, you see accumulation in deep OTM puts. Normally, in most cases action is visible ahead of key events in deep OTM calls and puts.

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