An advanced options volume scanning tool that aggregates call and put volumes across multiple strikes to detect unusual trading activity and market sentiment shifts.
Explore complementary indicator rolesHow it works
The options volume scanner works by allowing traders to select a base symbol, custom expiration date, and base strike price. It then automatically constructs option symbols and retrieves volume data across multiple strike levels, aggregating cumulative volumes for calls and puts. The script scans both above and below the base strike, using a customizable increment to determine strike spacing and a user-defined number of options per side.
The scanner plots the cumulative call volume in green and put volume in red, creating a visual representation of options trading activity. By analyzing volume patterns across different strikes, traders can identify potential market sentiment and unusual trading behavior that might not be apparent when examining a single strike price.
Why it may be useful
Options volume scanning provides traders with a comprehensive view of market dynamics that goes beyond traditional price analysis. By aggregating volume across multiple strikes, traders can detect unusual trading activity that might signal significant market movements or institutional investor sentiment. This approach offers deeper insights into potential market trends and investor psychology.
The method helps traders make more informed decisions by revealing potential market shifts before they become apparent through price action. By comparing call and put volumes, traders can gauge whether market participants are leaning bullish or bearish, providing a nuanced understanding of market sentiment that individual option contracts might not reveal.
When to explore it
This options volume scanner is most effective during periods of high market volatility or when significant news events are expected. Traders should use it when they want to understand broader market sentiment beyond single stock or option movements. It is particularly useful for identifying potential trend reversals or confirming existing market directions.
The tool works best when combined with other technical and fundamental analysis methods. Traders should pay special attention to unusually high volumes at specific strike prices, as these might indicate anticipated price movements or significant market expectations. It is an excellent complement to traditional technical analysis, providing an additional layer of market insight.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
