Hey Breakout!!!
Hope all is well with you my friend!!!!
Well, this is one of the questions that could take a book to write all of the possibilities on....
But let me just skip a bunch of theory and get to the bottom line (though it has changed somewhat with the lopsided amount of HFT % going on at this particular time). Follow this general rule.... option traders are smarter than stock trader in the short run. Of course there are exceptions to this rule. But overall, for the short term, let the options be your guide. And IF this does not makes sense with the daily activity, well then there are always other more sensible trades available to ya. Under normal thinking, you would think that they would be buying puts as a hedge....but computers do not necessarily think that way....when in doubt - follow the options or find another play short term...makes any sense to ya or do ya need more info???
Also remember that sometimes options are used to help support a stock position so check out who may have large holdings to see if maybe they are responsible for the option movement...I could go on and on about this, but does this short answer help any??? If not, just let me know bud!!!
(and I really love how your board is going!!!)
