Need Help with some Options Terms. Avg put/call ratio, etc.?
Hi, I am having a hard time with some options terms. The following are some examples from Veritas DGC INC (VTS). Can someone please explain what the numbers mean or are in reference to. Also, I don't know what Volatility means. Any answers would be a huge help, Thank you.
Avg Put/Call Ratio (30 day) 0.5x
Put/Call Ratio (1 Day) 2.8x
Avg Option Volume (30 Day) 120
Historical Volatility (30 Day) 19.94
Open Interest P&C (1 Day) 9,170
- AlexLv 41 decade agoFavorite Answer
Avg Put/Call ratio (30 days) 0.5x means that there were twice as many calls traded as there were puts, on average over the last 30 days.
Put/Call ratio (1 day) 2.8x means that in the previous session there were 2.8x more puts traded than calls.
Avg Option Volume is just that average number of contracts traded per day.
Historical volatility (30 day) - volatility is measured by standard deviation, which is a measure of dispersion of daily returns over a given period, in this case 30 days, annualized. So 19.94 means 19.94% on an annual basis. So, in theory, you would expect the stock to be between +19.94% and -19.94% in a year's time 68% of the time.
Open Interest P&C (1 day) 9,170 means that there were 9,170 oustanding (i.e. open) contracts.
- 1 decade ago
first i am to assume that you understand the difference between puts and calls. if so then the put/call ratios simply provide a way of measuring sentiment. the higher the average then it would imply people are buying more puts than calls therefore implying that they forsee the stock price going doing...(and vice versa)
in the event you are not sure what puts and calls are then I would recommend investopedia.com
...and volatility refers to the change in pricing of assets...in other words, stocks that have "high volatility" means the stock goes up and down a lot more than a stock with "low volatility". basically the dispersion of prices. standard deviation is used to measure volatility.
good luck!Source(s): my MBA and I trade too!