Understanding Unusual Options Volume and its Critical Role in Trading
In today's ultra-competitive trading landscape, traders are constantly looking for the secret weapon that will give them the edge they need to stay ahead of the competition. But what if that edge could be found by simply looking at one of the most dependable and time-tested indicators available: VOLUME.
Volume is one of the most powerful and reliable tools in a trader's toolbox. Understanding what drives volume can provide insight into a stock's price trend and market sentiment, and alert you of potential breakouts. Volume is especially important when it comes to equity options, as increased volume can indicate interest in a particular stock. Fortunately, Barchart has a great resource to help traders identify the most significant changes in options volume.
Barchart's Unusual Options Volume page shows the difference between the current volume and the average monthly volume - a strong indicator of increased interest in that stock. In addition, Barchart's Unusual Options Volume page allows traders to sort volume by puts and calls and provides quick, detailed access to the strike and expiration date information associated with the volume activity.
Join John Rowland, Barchart’s Head of Trading Education, as he helps you understand the difference between what could be "unusual activity" and what is just a unique event. John will discuss three scenarios that could drive high options volume activity and will use clues from Barchart’s Unusual Options Volume page to understand market sentiment, institutional trading strategies, and possible price movements.
In this webinar, you will learn about:
The importance of unusual options volume
The difference between unusual activity and a unique event
Barchart’s Unusual Options Volume page
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