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: 

Read more:

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