Thursday, November 16, 2006

Option Trading

Yesterday traing day saw Rothstein Optzia 1 rise 35.89%. It is really rewarding to watch such a phenomenon. The underlying stock rised 23.59% so the relation is 1.52. It is yet unclear how this mechanism actually works.


I am also trying to learn the Chaikin Index, that purports to discover if money is flowing into the stock. The Stock Doctor Blogger uses that index and is able to identify situations where money is being pumped in while the stock price stagnates or declines - clearly indicating that an outbreak is imminent. It seems to work but I cannot find the Chaikin Index for Israeli stocks nor a clear explanation why and how it works.

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