Option transactions OTC

Course Name: Stock Market Basics, Section No: 7, Unit No: 1, Unit type: Video



Since option transactions can take place OTC, I guess it's not a reliable measure for underlying asset movement speculations. Is this true?  

Hi,



Options are one of the highly traded derivatives in both OTC and regulated markets. They are altogether a different financial instrument when it comes to trading and has their own traits. Though they derive their value from the underlying it does not indicate anything about the movement of the underlying in its raw form. However, other data points like open interests, greeks and so on can be used to get some idea about the movement of the underlying. 



Hope this clears your confusion. Thanks.