If you see unusually high volume in puts what does it really mean ?

[ETJ]

What is in the OPRA indicator field? The answer may lie there and your broker should have access. My "guess" in a listed trade would be a married put and that would show in the OPRA field. Anything over 200 generates a LOPR report.

 

[Overnight]

...But 5000 options is only 50,000 shares. That’s only like 10MM notional for a name like tsla. Do you think Ken griffin even notices when one of his traders puts on 10mm of tsla?

I thought 5000 options would be 500,000 shares?

 

[wildchild]

Let say you look at ABC puts and you see there are 5000 puts traded for 1 specific trade 1 specific strike price. Usual volume is 50 . So what does it tell you ?
If someone sold those puts they are bullish but whoever bought them is bearish . So how do you use unusual volume in options?
Thank you

What does the implied volatility imply?

 

[john7722]

What is in the OPRA indicator field? The answer may lie there and your broker should have access. My "guess" in a listed trade would be a married put and that would show in the OPRA field. Anything over 200 generates a LOPR report.

Which borker do you use? IBKR can't figure it out, they never heard of it so maybe they don't offer it?

 

[john7722]

What does the implied volatility imply?

I don't have any specific example but if IV is around 50% and has been ranging from 45-60 in the past 3 month and then suddenly you have an increased options activity that looks to me like there could be a possibility of a move. Like some other users said , one can never know the motivation behind the huge options purcahse but it might be an indicator of a possible move.

 

[john7722]

large volume isn’t indicative of anything.

true you have to trade large volume to get enough Vega. But 5000 options is only 50,000 shares. That’s only like 10MM notional for a name like tsla. Do you think Ken griffin even notices when one of his traders puts on 10mm of tsla?

But what if the stock has 1B market cap , trades as $30, very low volume , low IV and then suddenly someone buys 500 calls 10% OTM exp in 2 month. Would that be an interesting trade to explore?

I 've been watching some youtube webinars about unusual options activity but it looks like everybody is just trying to sell you subscription at the end for info that you can find for free. If I was right even 30% of the time using this strategy I would not be selling subscription .

 

[ETJ]

Pretty much every firm/member see's the order condition field. Your broker is too lazy, doesn't choose to bother or is FOS. You can see the specs on OPRA's site. The condition field not the LOPR report.

 

[newwurldmn]

But what if the stock has 1B market cap , trades as $30, very low volume , low IV and then suddenly someone buys 500 calls 10% OTM exp in 2 month. Would that be an interesting trade to explore?

I 've been watching some youtube webinars about unusual options activity but it looks like everybody is just trying to sell you subscription at the end for info that you can find for free. If I was right even 30% of the time using this strategy I would not be selling subscription .

You could explore to see if something in a scenario like that. It doesn't necessarily mean someone is informed as they might be putting on a lottery ticket bet. But it also could.

 

[ETJ]

Here is an old conditions guide. Again, only subscriber/member access.

 

[john7722]

Here is an old conditions guide. Again, only subscriber/member access.