Options mechanics
Options Volume
The number of option contracts traded during a stated period.
What Options Volume Means
Volume measures transaction activity. Every matched trade adds to volume even when it transfers an existing position rather than creating a new one.
How to Read the Result
If 4,500 contracts of one strike trade today, volume is 4,500 regardless of how many remain open after clearing.
Limitations
- Bid/ask direction inference is imperfect.
- Multi-leg orders distort single-leg interpretation.
- One event can create temporary volume.
Common Questions
Is high volume bullish?
Not necessarily. Every contract has a buyer and seller and may be a hedge or spread leg.