![]() ![]() It tells me that whoever put on this trade is expecting a rise in the very-short-term, and I don’t need a considerable increase to see a profit. It has 27 options volume power (meaning the intraday volume was 27 times the open interest), and one option was traded over 61K contracts during the day (topping many other assets that are usually more active).Īnother key finding is that the option is very close out-the-money, and expires in 4 days. In this example, you can see that GSK appeared very high in both scans. Unusual Call volume Sorted by call volume I remove some assets that I don’t expect to trade (using the ‘exclude symbols’ filter), and I frequently change the sorting by options volume power and intraday option volume to see what trades top the list in both sortings. Depending on the day, I usually adjust the minimum requirements to be on the scan. During the trading day the results, and their order, will change, and it is helpful to watch this list throughout the trading day to have the pulse of the market. In the beginning, the scan is sorted by options volume power (option volume divided by the open interest). Unusual Call volume Sorted by call volume power We will click ‘edit’ on the scanner in the predefined scans section and see all the results in the ‘compose scans’ window. Unusual Call options Volumeįor this example, let’s start with the unusual call options volume scanner. To make this process a bit clearer, let’s start with an example, and then go over the general concepts. ![]() Remember that for every buyer there’s a seller, so we need to make some analysis in order to find the best trades. From there, you can sort, add columns, remove results, and make some adjustments to find better what you are looking for and how to trade it. To see the unusual options volume scan, click the ‘unusual volume’ tag, and then click on the ‘edit’ button for the scan you’d like. You can customize the scans to fit your needs, but we think you should start with the predefined scans and go from there. Option Samurai allows you to account for this by scanning according to intraday options volume, stock volume, options volume vs. How do you know if an activity is unusual? Some options are traded a few contracts a day while other trade tens of thousands every day. There are more than 4,000 optionable stocks and over 1.1 million options. By uncovering their footprint, you gain insight into their trades, and you can follow them if you want (or take the reverse trade). This connects us to the second point: why is it important? These players spend a fortune to gain an edge in the stock markets. Since these players work tirelessly to maintain their edge in the market, the unusual options volume serves as a ‘footprint.’ It allows you to know that something is interesting in this asset, and it might be beneficial to look into it and ‘ride’ the trade with the players. ![]() Higher activity means that more sophisticated traders and more market makers are now paying attention to this stock and specifically to this option contract. Unusual options volume is when the daily activity on an option contract is much higher compared with the regular activity on that contract and compared to the activity on the rest of the options chain. In this article, we will cover one way to trade these alerts and give you a framework to incorporate this into your trading.īefore we start, let’s explain: What is unusual options volume, and why is it important? There are many ways to trade these options, and you can customize the scan for your needs. These scans help you see what the ‘smart money’ in Wall St. Recently we’ve added two predefined scans that help you find unusual options volume across the entire market. ![]()
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