How to know if there is a large number of "put or call options" on a certain stock?

Question

If I am watching a stock, is there away to detect insider trading?Can I predict it by just looking at the volume (unusual volume)?.
Also how do I find out if there is a large number of "put options" on a ceratin stock?

Answer 1

Ranto is correct the "open interest" for an option tells you the number of contracts that exist. Many places, including

http://www.cboe.com/DelayedQuote/QuoteTable.aspx

will give you the open interest as part of an option quote.

Be aware that open interest figures are only updated between trading sessions, so they do not includes trades made during an open session.

As far as insider trading is concerned, Ranto is also correct that insiders must report their trades to the SEC and those reports are available through EDGAR. One thing he did not mention is that those trades do not have to be reported as soon as the they takes place, so the information is frequently somewhat out of date.

You cannot predict insider trading by looking for unusual volume.

Although open interest will tell you if there is a large number of put options on a certain stock, I recommend you take care in using that information. You have no way of knowing if a large number of puts indicates bullish, bearish or neutral positions. To a professional options trader, or even an educated amatuer trader, a put option and a call options are essentially the same. I have often traded put options to establish bullish positions, that is, positions that will make money if the stock goes up and lose money if the stock goes down.

Answer 2

The statistic that you want is called "Open Interest." I believe that it is published in the Wall Street Journal. It should also be available through Bloomberg, the options exchange and many other on-line sources.

As for insider trading, insiders are required to file that information with the SEC. You can get information about their trades through the SEC EDGAR database.

Answer 3

Not sure, but you could try : optionmonster.com
Never been to the site, but the brothers that run it are on " Fast Money" all the time and they always talk about the number of puts and calls that are taking place.
As far as insider trading...a Yahoo " quote" has a link to insider trading along the left side of the screen.