The OVI is Guy's proprietary trading indicator. It’s a unique tool that you won’t find anywhere else.
The letters OVI actually stand for ‘Options Volatility Index’, and the technology itself relies on complex algorithms and billions of data points. But don’t let this technical terminology intimidate you.
The OVI is incredibly simple to use, and you DON’T need to trade options to take full advantage of it.
Learn more about the OVI here
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What does the OVI do?
Simply put, the OVI measures the flow of the big, smart money in the markets. It does this by monitoring the activity between buyers and sellers of options. You do not need to know anything about options trading to use the OVI. But by looking at ...
It would be great to have ovi for the few UK stocks that are optionable.
The OVI really needs good liquidity in the options data, and UK options are thinly traded and far fewer in number. The other factor is that whilst US options are traded in 'lots' of 100, in the UK it is 1,000 so cost prohibitive for retail traders.
At some point in time, could the OVI go live so that an intra-day OVI would be possible?
The OVI is derived from, amongst other things, options volume, open interest and implied volatility. The OI component can only be updated at end-of-day, so unfortunately the OVI cannot be intra-day.
Is the direction of the OVI important or just that it is either in positive or negative territory?
It's all about support/resistance and breakouts together with OVI, AND with Big Money Footprints (at least a couple). For guided discretionary trading, you don't read the OVI on its own, it is not a daily indicator. Look for persistence in its ...
When Guy does the weekly watchlist, how come he doesn’t mention the OVI correlation to that stock?
Guy's main emphasis on his weekly reviews is the quality of setup and showing members the difference between the good, bad, or ugly. Regarding the OVI correlation star ratings, when one looks at a stock like Apple (a regular 5 star stock over the ...