I understand what everyone is saying but intuitively, I would think a sudden increase in option trading activity is an indication of higher interest in the underlying potentially making a big move. As an outsider it is true I cannot tell if the option insiders are bullish or bearish, whether they are long or short, a spread or any combinations, just that all of a sudden there are more interests in the underlying.
Options activities on stocks making big moves seemed to always increase.
The $64,000 question is whether this is a leading or lagging signal, whether one can use it to trade and if so how?
