A few months ago we published one of our most highly read articles titled, Are You Leaving Money on the Table? It compared people who just hang onto stocks to landlords who never rent apartments. It made many people who had at least 100 shares of a stock wonder how much they could make by “renting” that stock.
Today on an episode of NPR I heard an interview with Michelle Leder, of footnoted.org. I am glad that I caught the interview. I agree with her cause and a little more research into the corporate accounting practices in this country certainly can’t hurt.
The TRIN is a market sentiment indicator. The TRIN indicator is generally used to signal overbought or oversold market conditions and is religiously monitored by some option traders. The formula for the TRIN is:
So, how is the estimated “value” of a stock option determined by an option trader? An automobile’s estimated value can be found by looking it up on the Internet or in the “blue book”. A house’s value can be estimated by comparing houses sold in the surrounding neighborhood. But how can an option trader estimate the value of a stock option?