How to Use the Sizzle Index | Technically Speaking: Trading Stocks & Options
[Music] [Music] well good afternoon everyone welcome to our webcast on technically speaking trading stocks and options where we do explore some of the things you can do with technical analysis uh and use them in trades for stocks use them for options whatever works for you is great i'm happy to see that you join me here today just said quickly to some greetings to some of you that are here live in our class we've got vijay chesapeake bay ollie frank charles mary robert rk and uh el diego and i think probably a few more that i didn't quite get to appreciate all of you being here today i also appreciate barb armstrong being in the chat to help us out she always does such a super job and it's so qualified been trading the markets for such a long time and i think also has a perspective of what it's like to be in a new person's shoes maybe more recently than somebody like me and really can relate and send on that information which is something i really appreciate about barb today we're going to talk about something that i hope is more exciting to you than the pumpkin pie that you had last week when we didn't meet together and maybe even more exciting than that turkey gizzard you may have eaten as well we're going to be talking about the sizzle index today and how to use the sizzle index it's been something that a lot of you are interested in and so we're going to take a look at that today and explore it you can see on my slides i am on twitter at chill underscore tda throughout the week i'll post educational content that might be helpful to you barb does the same thing she's at b armstrong underscore tda and she posts a lot of helpful information if you're not following all if you're not following us as as coaches then you're missing out i don't want any of you to be missing out let's go through our important information and our agenda what we talk about today is intended for educational and informational purposes only not investment advice or a recommendation of any security strategy or account type options are not suitable for all investors as the special risks inherent option trading may expose investors to potentially rapid and substantial losses carefully read the previous provided copy of characteristics and risks of standardised options those get updated uh from time to time i think they just recently had some new additions or i'm going to say changes to it probability analysis shown are theoretical in nature and not guaranteed and do not reflect with any degree of certainty of an event occurring let's see past performance of a new security or strategy does not guarantee future results or success all investing involves risk including the risk of loss all right today we have a pretty simple agenda but there's going to be a lot of meat on that second point so first we're going to review a couple of open positions determine what we should do with them and and then we will talk about the sizzle index what it is how do you find it how do you run it and so forth and then of course we're going to do a couple of trade examples from the sizzle index that we find today those of you that are joining me via the archived webcast i want you to know that you can get your questions answered as well go ahead and type in the comments section what your question is and i'll go throughout the week and go back and check those and see what your questions might be so feel free to do that as well well number one what we're going to do here we're going to pull up our thinkorswim we're going to look at a couple of stocks that we need to follow up on i have on my chart here already a 20 moving average that's the red line and this blue line is a five moving average about three weeks ago we did some trades where we were looking for the five the very short-term moving average to cross above the 20 to give an entry signal it doesn't require discretion it either has crossed or it hasn't crossed okay one of the stocks that we looked at that day in place to trade on is one we are going to follow up with so this is a car gurus oh let's see i've got to spell it right there we go car gurus this is the day we got in that was on november 4th so that was like what maybe a month or so ago three and a half weeks for three four weeks anyway this is the day that we got in we could see on that day that blue five-day moving average had crossed above the red one and so that is an entry signal if somebody is just looking for only crosses it doesn't mean that they have to look at support or resistance it means you don't have to try to decide oh is that a good enough bounce is that a hold you know what exactly is it you're basically just simplifying your life by saying these are the two moving averages that i'm going to use here so on that day it crossed over and then an exit signal would be that the blue line that five crosses down below the 20. so we we entered into this position it did have a nice little run for us and then it began to pull back now some people might be tempted to say well let's get out right when i see maybe the price dip below oops wrong direction wrong direction again uh when we see the price dip below the 30 or the 20 moving average but that is not the rule the rule is when they cross so in this case the real cross uh came on this day right here which was about four trading days ago that was last week when it crossed below now it might be really barely below and i could see some traders saying okay i get out at the crossover but maybe let me give it one more day to make sure it really still crosses so i don't get thrown off by whip sauce that's a possibility too well what has happened since then now the stock continued to drop a little bit right the last couple of days here today it got as low as here and we are still in the trade well why are we still in the trade we are because many times traders do not want to put a stop loss on this type of a trade they want to just put an alert and have the alert that you've estimated that might give us an idea that hey these might be close to crossing again the other thing is you want to look at these every single day and to be honest with you in my paper money account that we do in our classes i don't pay a ton of attention to them during the week because i'm worried about what i'm doing in my own portfolio so there could have been an alert that went off i didn't really go and check but what would you say about now what is the right thing to do now because it looks like this five day moving average oh it's looking like it's starting to head up again i could see somebody rationalizing hey i'm gonna wait for that to happen for our purposes of our class our rule is we were going to get out on the cross and so we're going to follow through with that we're not going to change our rules in the middle of a trade we're just going to stick with it sometimes we have to make lemonade out of lemons and i understand that but for following through and just developing that habit of always doing what you said you were going to do in a trade let's let's get out of the trade so here's our car gurus right here and we did a couple of things number one we bought some stock about 23 shares of the stock we also bought a longer dated option that was to help mimic or be an option uh alternative and not just a stock alternative okay so we did those two trades here uh interestingly enough the stock is up about 39 looks like our option is up about 55 so we could get out of the trade lock in the profits and see if we get another crossover again right look for that to occur and again maybe waiting to make sure you don't get whip sought out but for our purposes we're going to take off this very small amount of profit and we are going to let's sell them individually here oh no it gives us the set the option to do both well i thought that was going to be both we'll just go ahead and sell the option here first and i'm just going to move it a little closer to the midpoint price and then we'll go ahead we'll we'll sell the stock here as well it's interesting this them this morning when i was looking at it i was noticing that they were about the same price up or down i think earlier today they were both up in the neighborhood of about 25 each and now we're seeing that the the option is performing a little bit better but let's go ahead let's put this at the midpoint price as well and we're going to send it on its way all right that's trade number one we'll wait and see if that clicks in for us as far as executing the trade now let's come over here to another one this one is um was the same situation we got in the same day we did that was november 4th and in this one we only did shares of stock i do want you to notice here though how much we are down percentage-wise we are down 22 does that mean maybe somebody took their eye off the marker yeah that could be let's go take a look at the chart osw here one spa holdings i'm going to back up so you can see a little bit bigger picture here you can see it was nice and upward trendy nice and bullish for several weeks in this nice upward trend we got in right after they announced earnings so they must have announced earnings on the fourth or the night before it looks like maybe the night before they announced so they had that reaction the next morning and the buyers liked it we had some buying activity going on we can see extra volume down here and it had that nice gap up well i guess the euphoria of the good news didn't last or maybe some bad news came in on the scene what has happened well our five crossed down below our 20 several days ago right it didn't do it immediately right the stock ran it takes some time for those moving averages to accumulate that data and then have a crossover but really we should have been out of this trade in our paper account definitely by this day november 19th that one i clearly see the crossover on this day it may have been just a little bit shy of actually crossing over so what do we do now well as we look at this we might say same thing our rules said get out clear back here on this day two weeks ago and what has the stock done since then it's continued to drop drop drop we never know how a stock's gonna go even though they had good earnings news supposedly they didn't uh that company did not continue to trade the way that it looked like they were going to it met our exit rules and so we're going to go ahead and exit a little bit of a difference between say this 520 crossover as opposed to looking at a stock that's broken support and is down at another support level in that kind of a situation you have to use some discretion you have to determine hey is this what i should do with my lemons to make lemonade in a situation where you have absolute strict roles and you're not going by your own estimations or your own interpretation of things then we're going to just follow it like exactly now it could be here as well that i may have received an alert that i ignored because usually on these i do put in alerts okay and simply all we do is estimate where something might be popping up where we're going to need to take a look at it but again this is the kind of trade you want to pay attention to every single day it doesn't have to be while the market's opening or open i should say maybe you don't have that opportunity but you do want to you know maybe you go to work and you come back after a day at work and you go through and just look look through your stocks then you get a spot days like this so much more quickly than when we take a look at it two weeks later uh surveillance wondered if there if it's possible to set up an alert based on the crossover instead of manually looking for one every day this question was brought up i think about the time we did these trades and somebody in the chat was good enough to type something in and i'm going to take a quick look because it was uh let's see somebody the person who asked the question was named john and i'm not sure who it was that provided this information uh i almost hesitate to provide it to you because i cannot guarantee the source so i'm going to say up front this is not guaranteed to work nor have i tested it but you could test it and see if it works for you and i'm going to copy over here somebody had put in there you that you can re create an alert on the price drop by doing the following so i'm going to copy because i copied that over before because i was going to uh take it out or check it out rather i'm gonna post this uh right here in my scan pad and let's uh go give it a little bit more room or my scratch pad and i'm also going to print it up here put it up here as a text note because my text notes i have the font being larger and let me move this over so we're seeing the oh my goodness that is incredibly large i'm gonna have to make the the uh font a little bit lower here so that we can actually see this so let's go into this text note there we go this giant text note i'm going to change the font to maybe like say a 22. hopefully with the 22 you can still see it okay it's not as tiny as posting it in the scratch pad oh it's so close i think this just says using the think script editor okay you can give it a try and maybe in my off time i'll give it a try too so i give you a more specific and certain answer okay so let's see okay kevin says now if cargo uh cargurus and this is was your question when we were talking about that so sorry that sentence gonna disappear and see irg the question was if if the carg option is is in a loss do we need to sell an option when the 520 crossover happens um if somebody wanted to re-enter into the trade on car gurus because we talked about how close it is to crossing over again but it's just not there so it doesn't have a reason to do it you could do whatever kind of trade you wanted to you could do a lot you could do a long option you could do a stock some people might um do some verticals with it although i think the rules that most people use for verticals probably is not going to be really conducive to a crossover system it's more kind of a trend trade type of approach so if it's in a loss you would want to sell the it doesn't matter if it's a win position or a loose position at the cross you want to sell period the only exception to that based on kind of this little system we've talked about is if you wanted to give it an extra day or two to make sure you're not getting whiplash down okay hopefully that makes sense uh oh it looks like we have a survey in the chat as well and you guys know from time to time we we ti we kind of take your pulse and see how you're thinking about things if you haven't seen this the survey before you just click on the link that's in the trap and i'd appreciate it if you did that now uh you don't have to fill the survey out now but then it's up and available and it's just a three pop in the radio buttons pop pop pop whatever your feeling is to to the questions being asked and then there's two places for you to write some comments sometimes people like to add things uh in those comments that what they might want me to talk about or cover in one of our sessions so feel free to use it for that as well uh serena says when the markets are moving fast and volatile is it better to use emas versus smas so exponential moving averages over simple moving averages i would say whatever it is just be consistent whichever one of those you use i don't think you want to be changing just because of all of a sudden there's more volatility in the market like there has been over the last two three days right the vix has kind of popped up more volatility in the market we're having some some uh volatility with major indices which means it's impacting the stock so i would say whichever one you like the best just use it sometimes in some of my setups i will have a 10-day exponential moving average so that's more sensitive to price changes and a 30 simple moving average okay so i actually have one scenario where i combine the two or have a combination of the two so one's not better one's not worse just decide how you like to have it um kevin says that you know is it a good idea to avoid entry into a 520 crossover trade when the stock is near earnings i think regardless of what your approach is whether it's a crossover or whether it's just looking for a cahold or seeing a flag whatever it is people generally just want to be aware of when that earnings announcement's going to be some people might avoid getting into the trade if it's coming up really soon if the earnings announcement isn't going to come up for say another month you know then you're holding yourself out of the market when you maybe had an entry signal so many times people won't get in when it's really quick around the corner but they might otherwise i think it's just always wise to know when it is and have on your uh kind of keeping track of it know that if you want to get out before earnings maybe you only have a one month trade right if it announces a month later so just know because there are some people who will trade specifically for the earnings all right what we're going to get rid of here are studies we're going to get rid of our 20 and our 5 because i'm going to kind of clean the chart up here and let's go to our next piece that we're going to spend most of our time which is talking about the sizzle index now i have a question how many of you are familiar with the sizzle index and have used the sizzle index before go ahead and chat into me because i'm curious to know that based on how many people we have here oops i just did something wrong trying to adjust something on my screen and i i ruined it i hate it when i do that okay now i've got it back so you can do that we're going to come over to the scan tab and actually before we get to the scan tab let me tell you what the sizzle index is and what it's used for several of you if if you've been in the market for several years you're probably familiar with commentators that would come on the business news and they'd say ow such and such has some extreme option activity today and you're thinking well how do they know there's extreme option i want to know when there's extreme option activity why can't i find out and it was about this time that finger swim developed the sizzle index and what the sizzle index does for us is it goes out and compares volume say today compared to the last five trading days of volume okay and by that then it's going to come up with the ratio and the bigger the ratio that means the more activity on a particular stock uh compared to the most previous five days so let's go over let's take a look here i'm curious okay uh vj says you're familiar with it but you haven't used it uh kevin has no idea about sizzle it's gonna be sizzling it's gonna be better than the pumpkin pie and the turkey gizzard uh tim said no mary says yes you're aware of it but haven't used it often all right appreciate that feedback i know there's a few of you that have been involved in it a little bit i'm going to come over to the scan tab and i'm going to because i forgot to i'm going to reset this whole thing so that it looks like it looks when you come into it right it gives us our three rows you always have to have three rows of criteria to run a scan and so over here we we have uh this little i'm gonna maybe draw around it so you can see it because it's such a tiny icon right here it looks like a flame all right oops come on all right there's our flame sorry that square's a little dorky and uh oh that was good i didn't you didn't see what i had in there before there because i forgot to change the camera but now we see all right so here is the sizzle index that we're going to run it and what we're going to do we're going to click on it and after i get rid of this square there we go i'm going to click on it and it's going to change this criteria it's going to change those three rows so i want you to see what the criteria is now that we hit it and basically it's a scan that's been pre-built for you and we can change it if we want to okay so the default comes in here and it says okay we're looking for stocks that have a minimum five dollar price well if we're looking for option activity that is more active than the last five days um doing a price tag higher than five might be advisable we're gonna do some changes here the volume of a hundred thousand minimum how many really liquid actionable stocks do you know of that traded a hundred thousand probably not a lot right maybe a day or two here and there and then we've got a market cap here of a 35 million um some might change that as well okay so any and all of these can be changed now i'm just going to run up vanilla the way it is right now it says it's going to show us 10 and it did but over here it says there are 2 943 stocks that meet the criteria that is in there right now well let's change it okay uh let's change it to i had some notes of where i wanted to go first we're going to change the price of this stock from 5 to 50. if we want to see let me start that phrase over again if we want to see a lot of of open interest in a stock and especially if we're looking on the put side then we may need to have something a little higher priced and different parameters than what we have on the defaults here now i do want to point out some columns to you you may or may not have these columns uh i had changed my columns and it changes them for all the scans you run not just the sizzle index so right here we have the sizzle index not sure why it's drawing my arrows backwards for me and this is a combination of puts and calls and then you can look at it separately you can see what the call sizzle is 275 and what the put sizzle index is which is less than one okay so something that's a one is about average over the last five days if it's higher than one then we see how much higher it is and it could be on the call it could be on the put it could be a combination of the two so that's what we have and these are probably the three columns you want to make sure that you have in your column structure how do you change it if they're not there go over here to this little here click on it hit customize and then you can go pick just type in sizzy and it'll give us the index the put and the call sizzle index and that's all i did to add them here and i like to see them together because we might have a big number here but it's interesting to know what was more calls or puts so let's let's change this a little bit more we're going to change it to say 50 and then we're going to we're going to let's see what was the other thing i wanted to change i also want to add here on the columns i want to see what that open interest is and uh what the volume is because it's the volume that we're looking for to be better and bigger and more of today than the last five trading days so i'm going to put it here it looks like i do have volume but i don't have open interest let's add open interest why is that not coming up for me uh we're okay without it for a moment not sure why it's not listed as a something we can use all right volume we're going to change this what are we going to change it to i'm changing it to 2 million do stocks that have 2 million of activity volume on average or even today are they going to have a better chance of having some a lot of options in there yeah they definitely will so we're going to have a 50 stock we're going to say a minimum of 2 million and this mill or this volume here is for today's volume if you want to get it for a period of time that's more of an average we'll use a different filter we'll bring up a study warning it doesn't work in paper money but it works on your live side then we're going to come down here to uh volume and then we're going to choose average volume and this is saying the average volume over the last 50 periods i'm just going to change this to 20 so it's a little bit shorter quite a bit shorter period of time and we're looking for that volume to be greater than 2 million oh i think i need one more zero there let's make sure oh i need one more there we go 2 million in volume over the last 20 days basically a month and we're going to get rid of this volume that is only checking for today's volume all right let's run it again except i'm going to have it go to about 30. all right 30 is a good nice number that we can work with our pool that it brought back is significantly smaller right now 30 out of 220 okay those are some some that we can deal with now i did this before class started i said sort it on the sizzle index how did i do that i just clicked in the box where it says sizzle index if i click again it's going to flip the order of it to go in ascending i usually have it in descending order so the top ones are the ones that are bigger so here's one ingersoll round its sizzle index is at 22.
and this is kind of interesting that its call sizzle index is actually 35 and the put is hardly anything so is that something that is having a lot of extra activity yes is it bigger than one yes let's go look at ingersoll rand so i'm going to go to the trade tab actually let's go to the charts first we'll just take a quick look at the chart and we can see okay looks like it's been running up it's been pulling back super activity of volume this day but let's go look at the options so ingersoll rand does not have any weeklies all right but let's see if we can figure out well where are we seeing the extra volume today who's it impacting these are the monthly ones that are going to expire on the 15th here's our open interest 5 000 plus and then we have 115 190. now that doesn't seem like it's such a big deal to have that today so let's look for bigger let's go over here on the puts volume we really aren't seeing a lot of volume okay so let's scroll down a little bit more maybe it wasn't in december maybe it wasn't in january let's go take a look at march now there we're seeing some extra activity on the call side which it said was more and so if we look at this we say okay this morning there are 2500 open interest positions and now there's an additional 2500 plus that went in the books so far today so uh looks like maybe at the 70 and the 60 strike price for march and i'm just curious we're going to open up june and see if we see much in the volume column really not seen a lot put side is just ignored and same thing with december so i think we've found where the extra activity is sometimes it may be over multiple series of options right instead of just saying um like say the front month of decembers you might see it in december and january and march so you need to kind of go and see what has the extra activity and then you have to say what do i think about the stock do do i agree with maybe what some of these contracts are doing i'm going to bring it up i'm going to bring up a different one that showed up on our our list and i will bring it up this is snowflake some of you might be familiar with snowflake they are trading today uh over 10 million shares so they're pretty liquid and it does have weeklies and usually liquid stocks do have weekly options as well so this is interesting let's go take a quick look at the chart and then see if we can interpret it so on snow it looks like they were running up here and then when they started to pull back with the market they had some heavy sell-offs heavy sell-off here a heavy sell-off the day of their earnings uh well the earnings were yesterday after the market closed so i'd been selling off for two days before the announcement then today it's up a decent amount almost 13 percent was up here higher earlier in the day okay so that's our look at it and then we are going to try to interpret what we're seeing in the volume so there here's the weekly options here for volumes that expire tomorrow okay there's just one more trading day and look at all this volume we have lots of volume on the calls compared to the open interest i mean look at this one six thousand new contracts today and this morning it only had 1544 so lots of activity there and we're going to notice this on both the call and the put side one other thing i wanted to show you is that you don't necessarily have to run the scan to see if there's some sizzle sizzle activity going on with your stock i have this today's option statistics open and right now we see okay the sizzle index on uh snowflake is a 6.275 so that's high extra activity six times extra activity and look at this it's split between the call and the put the puts actually have more activity than the calls as far as that volume today so as we go back up here and we look at the volume look at this boom boom boom look at these huge numbers compared to what the open interest is now part of that is because people have been closing out their positions possibly go before their earnings announcement came and possibly before the options expired but suppose you wanted to be a little speculative right i know some of you get wild hair sometimes i know i do and you think you want to be a little bit speculative and so you might say look at this premium that's still sitting out here there is 87 implied volatility priced into the options and so you might pick something maybe a little bit out of the money and say you know maybe i'll just do that let me just experiment in my paper money account we're going to use in this scenario we're going to do the 330 it has a 17 delta and what's the probability that it'll expire out of the money by tomorrow afternoon 81.54
okay so pretty high probability but is it guaranteed heck no nothing is ever guaranteed in the stock world is it but the probability is high so we somebody could consider doing something like this they could consider doing something like just selling the put and bringing in the premium thinking i'll hold it for one day and i'll glean 200 out of it now somebody that has a big account might consider doing this i'm going to put big giant letters here saying this is very very speculative okay uh some some people maybe they like that idea they might back off even more maybe a 325 or 320 strike price let's see where that 330 fits uh it has a 17 delta on it so 330 on the chart is going to be i'm going to draw a line here 320 330 i mean oh we're close to it oh it didn't start drawing for me oh that's pretty close oh it should have stayed there all right that's close enough alright so you're essentially saying you want it to basically and need it to stay above that 330 strike price to keep that premium and if it doesn't you may want to buy it back at a loss or you may say you know i don't mind being put the stock at 3 30. all right again um people will some like to take risks some don't and this is very speculative but we're going to do it we're going to see how see what happens with it see if by friday expiration week closes out if we how much money we end up with do we have to buy it back or not so we're going to go to the trade tab we're going to say all right here it's 210 for the 330 and i'm just going to sell one put alone for that price and maybe we can get mid price and that might be a little greedy one thing i want you to notice is how much buying power is going to be tied up just for trying to sell that one put so saying hey you're we're going to tie up over 8 000 until that option is either expired or you're done with the position meaning you went and bought it back or expired worthless okay so that's quite a bit of money if you were to figure out gee do i want to tie up that much money for that period of time uh some of you like i said might go further out of the money some of you might go maybe i just think the market overreacted to that and maybe you want to go out in time and sell something maybe between a 30 to 50 days something like that so you might maybe go out to the januaries with the idea that you think it's going to rebound that the market got it right on the first pop we don't know if it's going to stay there or not i want to show you one more uh let's see here i think i no i didn't submit this yet i went back all right let's put it in our class our trading stocks and options class i'm going to send it there okay we're going to look at the the sizzle index a little bit more and i'm going to look at uh one that came up earlier today it was this one crowdstrike holdings let me just highlight it is sizzle index it's not one of the absolute highest ones at 2.5 and most of that well looks like it's distributed nicely 2.8 on the call side so 2.8 times the volume so 200 280
percent higher volume and then the pit index it has a lot of activity too so if we come over here and we look at crowdstrike uh we're gonna see crwd that's better we're going to see similar type thing but i want you to look at the chart on this one first i should have gone there first look what has happened with crowdstrike again they had earnings last night here is the reaction to it today is that something you might feel super bullish about we've got just a smaller response here so somebody might say i don't think that one is going to recover that well let's do something on the bearish side to it if somebody wants to again completely speculative using these sizzle index options that we're showing you how to use today all right let's go to the trade page and again if somebody wants to be super speculative they could do a spread here but look how wide the open interest is here it's quite a bit i mean if you came out to say the 34 you've got 192 by 254 that's a pretty big gap so in this case let's go out to let's go out to [Music] december monthly expiration and let's come out to something in the range uh of about 225 i think we're going to do a 225 230. open interest is is pretty good we're seeing lots of activity extra activity in in these puts it looks like the biggest one is right out here way out of the money with a 14 delta we're going to do this one here the 225 230 so we're going to say sell vertical in this case we're not going naked on the call we want a vertical for sure we want to have that ability of have fixed gain and fixed loss potential we're going to bring in a credit about 91 cents here in our capacity here in terms of our risk in the past we've looked at something like not risking more than 750 in any single trade if we have a five dollar widespread and it's a 94 cents credit which is our max potential gain per set of contracts let me this has been actually a little bit higher than one so just to make the math easy i'm going to bring it up to one which is going to be a little bit past the midpoint at this point but if we divide four dollars of max potential loss into one dollar of credit that's about a 33 percent all right some people might like that some people might say i want it to be higher i want to be more aggressive or i want to be more conservative and sell further out of the money so as we come down here since we're risking four dollars we can only do one contract here one spread if we were to do two contracts it's not that much over it's only eight hundred but you still want to follow your rules so we're just going to do the one contract we're going to hit confirm and send i'm not going to put any other orders on it like i usually do just in the interest of time and we're going to send this to our trading stocks and options and we're going to just put it in there and notice there's going to be a little commission there because we're working with options we're going to hit send off and that might take it a minute to get filled if it doesn't get filled soon i'll go back and change it myself now let me just look and see real quickly if we've been able to address all your comments i know you've been keeping bar busy here open interest is not uncommitted transactions they are the balance of contracts sitting there okay this morning and then it hasn't changed tomorrow morning it'll be updated with the activity that took place uh so they are all executed 100 percent um how is the sizzle index calculated it is basically taking five times the average volume of a call or the five day average of a put so it's taking that five day average and comparing it to what the volume is today and so that's why anything above a one is having extra activity anything below a one is lower than than regular activity or uh average activity over the last five days it's probably a better way to say that well let's see here we reviewed our open positions found we had a couple things we needed to work with and uh obviously spent time on the sizzle index were able to get in a couple of trades based on that extra volume that we were seeing well for you to apply it and start understanding this and using it if you choose to use it over the next four days i want you to run the sizzle index and i want you to go look up some of those stocks that come back with higher values in either the sizzle index or the collar the put ratio whichever one of those you might be leaning towards i just want you to investigate it all right um it's going to zeke it's going to do both buy in cells that's because we don't know we can we can see the the volume activity taking place we don't know if it's a buy we don't know if it's a cell we might um see that maybe it is um or in our mind would say well if it's way out of the money it's probably something that's sold we could say that but we don't actually really know all right so we have to make some of those assumptions on our own again i appreciate you being here today and i appreciate you filling out the survey for me that always helps us as coaches barb thank you so much for your help out in the chat and answering questions as we wrap up i just need to remind you uh number one subscribe if you haven't subscribed yet to the trader talks channel you'll want that i need to remind you what's coming up is going to be trading the trend i believe it's going to be james boyd today but what we talked about is for educational and informational purposes only it's not investment advice or recommendation of any security strategy or account type have a great day everyone we'll see you next week [Music] [Music] bye you