Turning Market-Wide Options Flow into Clear Signals: How to Use the Option Volume Report
When you first open an option chain, the wall of contracts can make it hard to see what truly matters. Where is attention building today? Is that activity unusual or just noise? Are traders leaning bullish or bearish—and are they doing it with simple single-leg orders or more complex multi-leg structures?
Market Chameleon’s Option Volume Report is built to answer those questions in minutes. It aggregates market-wide activity into a sortable, filterable view so you can quickly spot outliers, read sentiment, and decide where to focus deeper research.
Tool used: Market Chameleon — Option Volume Report
https://marketchameleon.com/Reports/OptionVolumeReport
Why Starting with Market-Wide Flow Saves You Time
If you begin by clicking into one symbol at a time, you risk chasing headlines or missing bigger shifts happening elsewhere. The Option Volume Report flips that workflow. You start broad—all listed options, one table—then narrow to a short list of symbols that actually merit your time.
This approach helps you:
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Prioritize: See which names are commanding attention right now.
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Contextualize: Compare today’s flow to a symbol’s own 90-day history.
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Characterize: Understand whether activity skews bullish or bearish and whether it’s driven by simple or sophisticated trades.
What the Option Volume Report Shows You at a Glance
The table is designed to give you quick, decision-ready context without drilling into dozens of tickers.
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Contract Volume vs. Notional Dollar Volume
Toggle between raw contract counts and notional value. Notional helps you normalize activity across low-premium and high-premium options so you compare flow on an apples-to-apples basis. -
90-Day Average & Relative Volume
You get a built-in baseline: the average notional volume over the last 90 trading days. The Relative Volume ratio (today ÷ 90-day average) shows whether current activity is unusually high or low for that specific stock. -
Call % / Put % (Sentiment Gauge)
The split between call and put notional volume gives you a quick read on directional tilt across the names you care about. -
Trade Structure (Single-Leg, Multi-Leg, Contingent)
Identify whether interest is dominated by outright calls/puts (single-leg) or multi-leg strategies (spreads, butterflies, etc.). Contingent trades often indicate options executed alongside stock (e.g., buy-writes).
A Practical Workflow You Can Use Today
Use the report as a launchpad for more focused research:
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Set your view: Switch to Notional Dollar Volume to normalize activity across different option prices.
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Sort by Relative Volume: Surface potential outliers—names running well above their own 90-day baseline.
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Scan sentiment: Check Call % / Put % to gauge the direction of interest.
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Check trade type mix: See whether single-leg or multi-leg orders are driving the tape.
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Apply filters to narrow candidates:
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Relative Volume > 2 to highlight unusual activity
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Put % > 70–80% to find names with concentrated put flow
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Multi-Leg % > 60–70% to focus on symbols seeing more sophisticated strategies
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Create a focused shortlist: Star or export 5–10 names for deeper analysis.
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Drill down: Move to symbol-level pages (IV charts, order analysis, earnings calendars) with context on why each name is worth your time.
How to Interpret the Signals (Without Overfitting)
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Treat Relative Volume as context, not a trigger. A high ratio flags unusual activity, but you still want to understand the catalyst (news, earnings, macro) and the structure (single vs. multi-leg).
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Look for confluence. Unusual relative volume plus a strong call/put skew and a distinct trade-type mix tends to be more informative than any single column.
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Mind liquidity. Thin names can print one large trade that skews ratios. Confirm depth and consistency before drawing conclusions.
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Be timeframe-aware. A name can show elevated flow intraday and normalize by the close. Re-check late day if you’re building a watchlist.
Examples from the Session
Below are illustrative examples of how you might use the report. Replace the tickers with your current targets:
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Example 1 — High Relative Volume, Bullish Skew
Screen: RelVol > 2, Put% < 30%, Single-Leg > 70%
Read: Activity is unusually high with outright calls dominating. You might next open the IV chart and option chain to see where call interest clusters (strike, expiry) and whether IV is extended relative to its range. -
Example 2 — Multi-Leg Dominance
Screen: Multi-Leg% > 70%, RelVol > 1.5
Read: Complex strategies are driving flow (spreads, butterflies). That can indicate hedging or structured opinions around catalysts. You might inspect term structure, skew, and upcoming events. -
Example 3 — Bearish Put Concentration
Screen: Put% > 80%, RelVol > 1.2
Read: Concentrated put notional suggests defensive positioning or negative sentiment. You might compare price action vs. VWAP and check whether trades printed at bid/ask to infer aggressor behavior.
Build a Repeatable Routine
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Morning: Sort by Relative Volume (Notional view), star outliers, and add 5–10 names to a watchlist.
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Midday: Re-scan for fresh outliers; check Call/Put % and trade type for evolving narrative.
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Afternoon: Re-rank your list, then hand off top names to deeper tools (IV charts, earnings, screener).
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Weekly: Save a filter preset (e.g., RelVol > 2, Put% > 70% or Multi-Leg% > 60%) so you can run it consistently.
Try It Yourself
Ready to turn market-wide options flow into a focused shortlist? Explore the Option Volume Report:
https://marketchameleon.com/Reports/OptionVolumeReport
Disclosure
Market Chameleon provides market data and analytics for educational and informational purposes only and does not make recommendations or offer investment, tax, or trading advice. Options involve risk and are not suitable for all investors. Consider your financial situation, consult a licensed financial professional if needed, and review the Characteristics and Risks of Standardized Options (ODD) before trading. Past performance does not guarantee future results.