Unusual Volume Preset: Trade With the Smart Money
The Unusual Volume preset surfaces contracts where today's volume vastly exceeds normal. Often a leading indicator of news, earnings, or institutional positioning.
What this preset does
The Unusual Volume preset surfaces contracts where today's volume is dramatically higher than typical:
- Very high daily volume (≥ 1,000 contracts)
- Liquid underlying (≥ $10 stock price)
- Standard wheel DTE
- Liquidity Cleanup on
A volume spike often precedes news. Smart traders pay attention.
When to use it as a wheel seller
This preset is double-edged:
- Pro — heavy volume = tight spreads, easy fills, often elevated IV (rich premium).
- Con — heavy volume can signal an event you don't know about. Always check news.
A worked example
- Open the Put screener.
- Apply Unusual Volume Put preset.
- For each candidate, read recent news on the underlying.
- If the volume is from broad bullish positioning (not bearish or earnings), it's a green light to sell puts.
Common mistakes
1. Selling against directional flow. If put volume is exploding because a major hedge fund is buying protection, joining the sell side is fighting the market. Read the flow before clicking.
2. Treating it as a universal "good" signal. Unusual volume can mean unusual risk too. Always combine with Exclude Earnings.
Where to go next
- Read Volume filter for the underlying mechanic.
- Try Discover for a curated daily flow review.
- Pair with High IV preset for rich premium + flow.
Frequently Asked Questions
Is unusual options volume bullish or bearish?
Volume alone doesn't tell you the direction. The Unusual Volume preset surfaces high-flow contracts; it's up to you to read the flow (calls vs puts, OTM vs ITM, near-the-money sweeps) and combine with the underlying news to interpret.