Finding options with large trading volume and OI





Finding options with large volume and OI

We go over how to find option contracts that are trading heavily. We look for call options with above normal volume and out of the money call options with high implied volatility levels. We also look for put options with a large amount of relative volume and changes in implied volatility levels.

 

We will go over how to compare the volume against the open interest changes the next morning to get an idea how traders are building positions.