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Unusual options activity from Reddit: how to check it yourself

Unusual options activity means a contract traded far more than normal. To check a post, open the options chain: if today's volume is well above the open interest at that strike, new positions were likely opened. If volume is high but open interest is already larger, it may just be existing positions changing hands.

Free options chains with volume and OI

Three checks that take a minute

Volume against open interest: volume above open interest suggests fresh positioning. Open interest updates once a day, so confirm it the next morning.

Expiry: a large trade in contracts expiring this week is a short-term bet or a hedge. The same size months out says more about conviction.

Price paid: trades filled at or above the ask lean toward buyers, at or below the bid toward sellers. Without that, you cannot tell bullish from bearish.

Why a big trade is not a signal

Large option trades are often one leg of a spread or a hedge against a stock position. The buyer can be right, wrong, or not betting on direction at all. Use unusual activity as a reason to look closer, not a reason to copy.

Questions

What counts as unusual options activity?
There is no single rule. A common test is volume several times the typical level for that contract, or volume above its open interest.
Should I follow unusual options activity?
Not blindly. You rarely know whether the trade was a hedge, part of a spread, or a closing order. Check the chain and decide your own risk.
Where can I see volume and open interest by strike?
Obelion's options chain shows both for every strike and highlights strikes with unusually high open interest or volume, free.

Related

For education only, not financial advice. See the disclaimer.

Unusual Options Activity on Reddit: How to Tell Real Flow From a Screenshot | Obelion