Quick notes if visiting free side of Optionmonster.com

 

 

Pete and Jon Najarian's optionmonster.com is a valuable tool for options information. These are some quick notes for those using the free portion of the site.

There is a tool called Thermal Imaging located on the right hand side of the optionmonster homepage and typically you must scroll down a bit to see it.  It is rough data from their Heat Seeker program that is updated every 15 minutes during the trading session.

It defaults to the Hot List which outlines the top three call and put trades defined by volume that took place  in the last 15 mintues.  You can expand the list to get the top ten trades by selecting biggest trades and you will get time the trade took place and you will see an assortment of put and call trades.  You can also get the same information for the indices like the QQQQs, IWM, XLE and the like.

 

I would strongly caution anyone visiting the site that thinks they can simply use the Thermal Imaging information to gain an edge. As we discuss in other pages on optionsstore.com, volume does not tell the whole story. The volume could be considered large by the casual reader, but it may be a fraction of the open interest which may mean that someone is closing a large position or it could be part of a sophisticated dividend capture play or something else that is not directional. Do you really want to be jumping into a position when someone with big pockets is closing a position?

You could get lucky by trading the options listed on Thermal Imaging, but I can tell you that most times these options are not even mentioned on the subscription portion of the site. Trading on the puts and calls from Thermal Imaging without looking at other important factors is simply guessing. I simply mention this since I have noticed on forums and message boards that others felt they could get the information the Najarians dole out for free simply by following the Thermal Imaging and this is simply not true.

The home page lists interesting stories -- some option related and others related to earnings.

The best feature they have on their site is the option quotes.  It is delayed by 15 minutes or so, but optionmonster.com provides in-depth information on options not found by the regular investor.

Yahoo Finance and optionmonster will give you the same bid, ask, volume, and open interest data on a particular option.  A few things optionmonster provides that Yahoo Finance does not is option chart pricing and my favorite - historical data. I haven't seen this information anywhere else and I think it is valuable.

You can go back and see how many options traded for any day (volume) along with the open, high, low, change in monetary value, and percentage change. This is available on the free side of optionmonster!  

There are also various webcasts you can see to get your fill on option activity from Doctor J.

To view the webcasts and full articles, you must register on the site. There is no cost to do so.

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