Irrespective of your intentions to trade options or not, it’s always useful to consider the securities making the rounds in Barchart’s Unusual Stock Options Volume screener. Per the investment research platform, the screener shows the difference between the current volume and the average volume over the past month, highlighting unusual activity. In practical terms, it may signal how the smart money may be positioning its funds.
While the derivatives market has skyrocketed in popularity since the COVID-19 pandemic, it’s still an opaque arena. That often works in favor of institutional and professional players, who may want to initiate a position without setting off alarm bells in the open market. With options, it’s easier to hide intent as these specialized financial products could be acquired for myriad reasons, including hedged bets and multi-leg transactions.
