COT report

Discussion in 'Newbie Questions' started by lucacrebbe, Jul 19, 2018.

  1. lucacrebbe

    lucacrebbe Trader

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    Hello I was looking for a website in which I could find a COT report of what option's traders are doing, and I have tought that it could be some kind of indicator for the upcoming week

    The COT is every friday as I know, if someone would know that there has been a prevalent short sentment during the first day of the week, how could I use this as an indication for the next week?

    How the option market influence both forex and Stock Market? And is there any kind of report for OTC trading stocks? I mean the volume of OTC traded stocks.
     
  2. Enivid

    Enivid Administrator Staff Member

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    You use the options COT data the same way you would use futures COT data. The consensus is that 'smart money' positions indicate the long-term trend. The good thing about options is that you could derive some interesting information also from their pricing.

    No, OTC is OTC - it is not reported.
     
  3. lucacrebbe

    lucacrebbe Trader

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    How do you recognize the smart money inside the COT report?

    About options, you could check the stike price where the most of the money is it expected too exit or to enter? So you could derivate an idea of what is going to move the price in the next week?
    Option and Futures do they move the market the same as the normal buying / selling activity (outside Option and futures), or they have less power compared to the normal buying / selling activity (not option market)?
     
  4. Enivid

    Enivid Administrator Staff Member

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    You can read about using the COT in our lesson about this report:
    https://www.earnforex.com/forex-course/the-commitment-of-traders-report/

    You can check how the options are valued depending on the strike price and expiry.

    In currencies, no, options and futures do not move the spot market rates.
     
  5. lucacrebbe

    lucacrebbe Trader

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    Thank you. And in stock market?
     
  6. Enivid

    Enivid Administrator Staff Member

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    In stocks, the spot equities follow the movement of the off-hours futures, resulting in daily gaps.
     

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