Understanding unusual options activity and following the options crowd is essential because it can give you deep insight into market expectations and trends for a particular stock. However, tracking options volume can be a substantial indicator of the best trading options for stock trends. The Sizzle Index is the best trading tool for understanding and tracking options volume.
Interested to know about the sizzle index? If yes, stay with us.
Let’s find out: What is a sizzle index?
Sizzle Index is a tool used to describe the ratio of a security’s current options volume over that security’s average options volume. For instance, if you observe a stock with a Sizzle index value of 6.00, the current daily options volume is six times that of its daily average option volume.
The sizzle index is also called the unusual options activity monitor or scanner and is used to scan trading assets to find the unusual volume.
It helps by supporting the invested money in the stock and observing the most favorable trading options. No need to keep an eagle eye on the stock all the time. “Quick Scan,” an outstanding feature of Sizzle Index, does this massive work in no time by pointing out the unusually high volume.
Read on to know more about Sizzle Index!
What is Sizzle Index in Thinkorswim
What is the stock Sizzle Index?
The sizzle index is a trading tool offered by the trading platform Thinkorswim. The sizzle index is ideal for observing and revealing the inner detail of a particular stock.
In Thinkorswim, Sizzle Index depicts the ratio of a security’s current options volume over that security’s average volume. Sizzle Index finds out unusual activity in asset volume.
Options volume is pretty helpful in detecting stocks when the price rises or falls. While scanning option volume, you need to make it clear whether the traders are indulging in selling or purchasing the call options or put options. And for this, the Sizzle Index helps in screening upcoming stocks with unusual options volume.
How to use Sizzle Index
It’s easy to set the Sizzle Index on the Thinkorswim platform.
- Click on the scan tab and select the Stock Hacker from the sub-tab row.
- Click on the Sizzle Index on the right of the Stock Hacker header. Top 10 Sizzling Stocks scan template will be loaded.
- Three stock filters will be added by default. By clicking the buttons above the filter area, you can modify these filters or add more filters up to your requirements.
- Now, click scan. A watch list will appear, holding the results. However, all operations available on the watch list will also be available on search results.
- To save your query, click on the Show Action menu button, select Save scan query, enter the query name, and click on Save.
You can remove or add columns, add orders, adjust sorting, create alerts, and more.
What is a Good Sizzle Index
What is a good sizzle index?
The sizzle index works out to identify definite options agreements while trading an increased volume relative to the agreement’s average daily volume.
A high-value sizzle index is good because it detects unusual market behavior. High Sizzle index, for instance, 5.00 or 10.00, reveals that a great move can occur soon.
As an unusual options activity scanner, the Sizzle Index enables you to earn profit from a given stock. For instance, a Sizzle Index of 0.50 shows that the current volume is at half its average.
What is a High Sizzle Index
Is a high sizzle index good?
A high Sizzle Index value is suitable for a stock investor. A high Sizzle means you must be aware of a stock’s possible price move or swing, and secondly, if a low or high Sizzle Index coincides with a significant price swing in a stock.
A significant move comes along with a high Sizzle and predicts the sustained strength of that move.
How To Read Sizzle Index
How do you calculate the Sizzle Index?
You can calculate the Sizzle Index as the ratio of the current total volume of put and calls options to the Arithmetic means of daily put and calls volumes over the last five days.
Add the Sizzle index to Watch List columns in the Thinkorswim platform to determine the activity level in a security’s options. You can also calculate the individual call, put Sizzle Index values, and watch them on Watch List Columns.
What is TD Ameritrade Sizzle Index
What is Sizzle Index Scanner for?
Sizzle Index scanner is a Stock Hacker scan template of the TD Ameritrade Thinkorswim trading platform. The sizzle Index scanner loads the top ten stock symbols and sizzling securities with the highest Sizzle Index values.
By default, these values have a market capitalization of at least 35 million dollars, a volume of 100.000 shares, and the last price of a minimum of five dollars.
Frequently Asked Questions
What is the Sizzle Index TOS?
The sizzle Index is a great feature or trading tool of Thinkorswim. It enables you to observe current stock symbols and to watch an increase in the number of existing options trading compared with the last five days’ average and performance. To analyze each stock in detail, you can also observe all price data and put and call sizzle columns.
How do you explain the Sizzle Index?
The sizzle Index can be explained as a ratio of a security’s current options volume over that security’s average options volume. Hence if you watch a stock with a Sizzle Index of 4.00, it depicts that its current option volume is four times that of its average daily options volume.
What is Volatility Sizzle?
Volatility Sizzle calculates todays’ volume against the last five-day average. You can also observe regularly volatile stocks. However, the Sizzle Index can be used as an indicator in many ways. Simply, it can detect which stock’s options are producing the most interest, the forthcoming news signals, and so on.
In forex trading, tracking the hot trends of the stock is the most profitable avenue. For this approach, simply stick to the options crowd to explore stock trends, and Sizzle Index is the best to start trading through the power of observation. Here you can scan the trading assets of the world to search for the stocks that suit your criteria.
However, tracking option activity will give you insight into market expectations. Sizzle Index effectively scans unusual options activity in four steps: scan, compare, refine, and save.
Thus Sizzle Index can help traders to find, filter, refine, and monitor unusual options activity. Last but not least, develop your trading skills and understanding rather than just relying on indicators and signals.