Unusual Activity
Options trading volume that significantly exceeds normal levels, potentially indicating informed or institutional activity.
Explanation
Unusual options activity (UOA) can signal that informed traders are positioning for an expected move. Key indicators include volume far exceeding open interest, large single transactions, and activity in specific strikes or expirations. However, unusual activity can also be hedging rather than directional speculation.
Example
The AAPL 160 call normally trades 500 contracts/day but suddenly sees 15,000 contracts traded in an hour, suggesting unusual activity.