Whenever there is a high level of conviction that a certain stock will make a move shortly, investors can observe an anomaly, specifically in terms of volume for that stock. However, not all volume is equal, as share volume is not the same as options volume. In this regard, there is much more at stake in the latter; therefore, it matters more to investors.
For those seeking a signal to potentially trade, looking for unusual call options volume can be a good place to begin a search. Traders who are willing to load up on an unusual amount of call options typically have decided that there is only one way a given stock can go, and that is up.
