Would you like to know if there is a way to easily monitor volumes and open interest?
In this article, we show you 5 sites with a free options volume scanner.
As we have already shown in a previous post, to trade the options it is essential to keep the volumes and open interest under control.
In this tutorial, we will show you some tips and tricks to use.
Let’s start with the most famous yahoo finance.
In this link, you will find options with open interests greater than 10,000.
Let’s take as an example the first EEM CALL expiring 19 December 2019 strike 44 $.
Let’s open the graph and see that in fact $ 44 is a very important and graphically visible level. On these types of levels, many will generally be placed.
Most likely an important open interest on such a level will hinder price movement. This open interest could, in fact, represent an excellent resistance.
It is worth mentioning that open interest represents all open contracts and not yet closed.
The unusual options activity
Barchart is also a site widely used by options traders. It provides us with this interesting data concerning the volumes traded.
It does not give us a bullish nor bearish indication, it tells us that something is happening. We will be the ones who will have to interpret the data through technical or fundamental analysis.
The increase in volumes could be dictated by a past or imminent earning. It could come from news or a reaction to an important movement.
Another site that provides a scanner on the unusual activity option is optionsonar.com.
Also, in this case, the scanner gives us only an indication relative to a strange increase in volumes.
Let’s now move on to Optionistics.com similar to the others but with a few more filters.
Finally, MarketChamaleon.com provides an excellent scanner for volumes only.