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How To

How to Forecast Call Option Volume

Contributor
By eHow Contributing Writer
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Many stock, commodities, and currency investors buy shares with cash or use margin accounts to buy with credit. If your securities investment is tied to a margin account, the call option on your account can easily wipe out your gains. Be prepared with information that keeps you abreast of trends and events that affect the call volume.

Difficulty: Moderate
Instructions
  1. Step 1

    Discover the techniques used by many analysts that predict securities futures. Download the free "Ebook of Technical Market Indicators" at the Wallstreetcourier website. Important indexes mentioned here include the Chicago Board Options Exchange, the Smart Money Flow Index and Dow Jones.

  2. Step 2

    Track call rates the in "The Wall Street Journal" money rates section. Visit the websites of the top brokerage firms to keep track of their interest rates on their margin accounts. This publicly available information provides forewarnings of market shifts that increase or decrease call option volume.

  3. Step 3

    Follow the daily Standard and Poor 500 index in the "Wall Street Journal" and note excessive buying and selling activity that may affect your margin account.

  4. Step 4

    Review index fund reports and the NASDAQ Composite. This stock price data will provide hints about investor sentiment and possible call option volume.

  5. Step 5

    Explore market and bond news at Forbes, a trusted site. Keep track of purchases, sales, takeovers, mergers and bankruptcies that could affect the securities that you hold in your margin account.

  6. Step 6

    Track initial public offering stock announcements and obscure transactions that cause a sudden change in the market sentiment and the call volume.

  7. Step 7

    Keep an eye on news about international stock market activity for emerging and established markets, energy prices and credit rates. Federal government budget actions and interest rate policies provide useful clues that should not be overlooked.

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