Option Time and Sales (T&S) Overview

The Time and Sales (T&S) feature provides a detailed, real-time tape of every individual trade executed for a specific option contract throughout the trading session. Each entry records the exact time, trade price, volume, and key contextual data, giving traders a granular view of market activity.

Key Data Points for Each Trade:

• Execution Time: The exact moment the trade was executed, allowing traders to correlate activity with market events.
• Trade Price: The price at which the contract was traded.
• Volume: The number of contracts traded in that specific transaction.
• Trade Condition: Categorizes the trade as part of a multi-leg trade, a contingent trade (paired with a stock transaction), a sweep order, or a standard trade. This classification provides insight into the nature of the trading activity.
• Market at Time of Trade: Displays the bid and ask prices at the moment the trade occurred, offering a snapshot of market conditions during the execution.
• Implied Volatility (IV): The implied volatility at the traded price, helping traders understand the option's market-perceived risk level at that moment.
• Underlying Stock Price: Shows the stock's price at the time of the trade, allowing for a direct comparison between the option and stock activity.

Usefulness of the T&S Data:

1. Transparency into Trading Activity: The T&S feed offers a transparent and complete view of every trade for that option. Traders can see when significant trades occur, helping them understand the flow of orders and identify any unusual activity.
2. Order Timing and Correlation: By mapping trade timestamps against market events (news, earnings, economic data), traders can identify what triggered bursts of activity and better understand market reactions.
3. Market Depth Context: Viewing the bid and ask at the time of each trade helps traders assess whether the trade was executed near fair value or at a premium/discount, providing insights into the aggressiveness of buyers or sellers.
4. Multi-Leg and Contingent Trades: The trade conditions column helps traders distinguish between pure single-leg option trades and more complex strategies, such as spreads or delta-neutral stock-option trades, providing context for why the volume may be elevated.
5. IV Tracking: Monitoring the IV of each trade can reveal shifts in how the market perceives risk, highlighting moments of heightened uncertainty or calming of volatility expectations.

This data equips traders with the tools to track real-time market activity, identify significant trades, and gain a deeper understanding of how the option is being used by market participants.