How to Trade Unusual Options Activity

Webull has added an unusual options activity list. Let's check it out!

Identifying Unusual Options Activity

The unusual options activity list shows you symbols whose options contracts are displaying unusual behavior. It is an efficient way to track options activities and understand the present options market. With this tool, you can easily find unusual options activities, such as unusual trading volume for a specific contract, which might indicate the sentiment of other investors. This can help you find trading opportunities and make more informed decisions about option trading.

Why is Unusual Options Activity Worth Using?

  • Monitor the options market

Unusual options activity provides easy, intuitive ways to zero in on the most dynamic segments of the option market. You can search by trading volume, most traded options, and more.

  • Assess possible future movements

Trading options require investors to make predictions about the timing and direction of a stock's price movement. Keeping an eye out for unusual options activity can signal that investors believe a move will occur soon.

  • Making more informed contract selections

For investors who are considering options trading, the unusual options activity tool can provide valuable information and context for their research and analysis.

How to Find Unusual Options Activity

Things to Look Out For

1. Understanding key indicators

  • Pulse Index: Volume of all options on the underlying stock / Average volume of all options in the last 30 days.
  • Call Pulse Index: Volume of all Call options on the underlying stock / Average volume of all Call options in the last 30 days.
  • Put Pulse Index: Volume of all Put options on the underlying stock / Average volume of all Put options in the last 30 days.
  • Vol/Open Int: Total volume of all options on the underlying stock / Total number of open positions for all options. Note that the open int shows the previous data during the market as it can only be calculated after market close.
  • Vol/Open Int in Call list: Total volume of call options on the underlying stock / Total number of open positions for call options.
  • Vol/Open Int in Put list: Total volume of put options on the underlying stock / Total number of open positions for put options.
  • P/C Ratio: Total volume of all put options on the underlying stock / Total volume of all call options.

2. Real Time Quotes

  • If you don't subscribe to the OPRA real-time quotes, the list will show quotes on a 15-minute delay.

Bottom Line

The unusual options activity list is a powerful and helpful analysis tool for every options trader. It saves you time and effort when monitoring the options market, and can be very effective in finding options trading opportunities. Update your app to the latest version to use this essential options trading tool - Unusual Options Activity List!

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Disclaimer: Options trading entails significant risk and is not appropriate for all investors. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Losses can potentially exceed the initial required deposit. Before trading options please read the Options Disclosure Document "Characteristics and Risks of Standardized Options" which can be obtained at www.webull.com. Index Option contract fee, Regulatory and Exchange Fees may apply.
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How to Trade Unusual Options Activity