Options : higher call volume does not necessarily mean more call buyers?

Is high volume on a call option good?

In essence, a high call volume indicates a great deal of interest in the shares and an expectation that the value will rise within the period of the expiration. This amount of interest can itself actually cause the value to rise.

What does it mean when an option has high volume?

For options markets, the volume metric tabulates the number of options contracts bought or sold in a given trading day; it also identifies the level of activity for a particular contract. The greater the volume, the more interest there is in the security.

How does volume affect options?

Daily Trading Volume



Trading volume is the number of shares or contracts traded in a given period. When looking at the option’s underlying stock, the volume can give you insight into the strength of the current price movement. Trading volume in options, just like in stocks, is an indicator of the current interest.

What does option volume indicate?

In short, option volume is the number of contracts traded in a security or an entire market during a specific time frame, usually one trading day. It is simply the amount of options that change hands from sellers to buyers as a measure of activity.

Is a high Put Call Ratio bullish?

An extremely high put-call ratio means the market is extremely bearish. To a contrarian, that can be a bullish signal that indicates the market is unduly bearish and is due for a turnaround. A high ratio can be a sign of a buying opportunity to a contrarian. An extremely low ratio means the market is extremely bullish.

Do options volume affect stock price?

Options do not impact stock prices. It is the opposite, the derivative affect of the underlying on the resulting value of the option.

How do options trade with volume?

Quote: So it shows you the open contracts that are out there but with volume for option volume it's the number of contracts traded in the day and for stock volume it's the number of shares.