I trade Unusual Options Activity (abnormal volume in calls or puts) because more often than not, these trades result in a stock making a major move.

The reason that I trade Unusual Options Activity is that SO many times a trader buys a Call or Put position before a big move in the stock. Every single stock has stock volume it trades in a day. This matters so much when I am determining if I think a signal is a good trade. Today, we saw a trader buy over 10,000 TRU December 65 Calls which is the right but not obligation to control 1,000,000 Million shares of stock on the 65 strike between now and December expiration. Then I looked at TRU has only traded 484,000 shares today.

The reason that I trade Unusual Options Activity is that big-time traders often buy call or put positions right before a big move in the stock. Here’s what I look for – shares exchanged between buyers and sellers in a stock is referred to as a stock’s volume. Also, most sizeable stocks that have options contracts that trade daily, so there is also a certain volume that exists for options contracts.