Help
Print
Unusual option volume
Unusual option volume is an important metric to scan in the market to learn what are the big players are trading. Since those players spend a lot of money sharpening their edges, and they always keep improving - watching the unusual options volume can serve as a footprint and alert us to potential trades in the market. However, since all market participants are aware of people searching for this - they often try to hide this. Please check this blog post about how to trade unusual options trading that we wrote (including an example and a step-by-step analysis)
Data points:
To measure the volume you can use:
- Options volume- the intraday option volume for the contract
- Open Interests - The number of open contracts on each option
- Option Volume power - the ratio between the intraday option volume and OI.
- Stock volume - the intraday stock volume
- Stock average volume - the average volume for the stock
- Stock volume power - the ratio between the stock volume and average stock volume
- Total option volume - the options volume across all option contracts for the symbol (we use 14 days average)
- Total Open interest - the total open contracts across all the options chain
Predefined screens:
We have created two predefined scans to help you get started looking for unusual options volume:
- unusual call volume (long call strategy)
- unusual put volume (long put strategy)
Read more:
- Read the blog post with step-by-step guide example on how to analyze unusual options volume: blog
- See example use case (Unusual volume for options priced lower than $1)
FROGED