Tutorial 7 of 392. Core Filters Every Trader Uses5 min read

Volume Filter: Only Trade Liquid Options You Can Exit

Set a minimum daily option volume so you don't get stuck in contracts with no buyers. The single most underrated safety filter on the screener.

Why option volume matters

Volume is the number of contracts traded today on a specific strike and expiration. Low volume = wide spreads, slow fills, and a real chance you can't exit before expiration.

If you've ever placed a limit order and watched it sit untouched for hours, you've felt low volume.

Where to find it

The screener's Volume filter is in the sidebar of both:

It's a slider with min/max from 0 to 1,000+.

Recommended thresholds

GoalMin volumeNotes
Bare minimum25OK for buy-and-hold, brutal to exit
Wheel default100Safe for most wheel trades
Active management250Tight spreads, easy fills
Day-trading-ish1,000Only the most liquid names

The screener's default is 100, which is a sane starting point.

Volume vs Open Interest

Beginners often confuse these two:

  • Volume = traded today
  • Open Interest (OI) = total open contracts cumulatively

A high-OI contract with 0 volume today still has a market — it just isn't trading right now. A low-OI contract with high volume is brand new and surging in interest. The screener shows both columns; we filter on Volume because it more directly proxies same-day liquidity.

A simple rule of thumb

Aim for at least 3× your intended position size in daily volume. If you want to sell 10 contracts, look for at least 30 contracts traded today on that strike.

Pro tip — pair with Bid-Ask Spread

Volume tells you how many contracts are trading. The Bid-Ask Spread filter tells you how cheaply you can fill them. Together they form the complete liquidity picture.

A great combo:

Volume ≥ 100, Bid-Ask Spread ≤ 5¢ (for $1+ premiums) or ≤ 10¢ (for $2+ premiums).

Common mistakes

1. Setting min too high on small caps. Small-cap options rarely trade > 200/day. Either accept lower volume or stay in large caps.

2. Trusting weekend numbers. On Mondays, volume can look low simply because trading hasn't ramped up. Refresh later in the day.

3. Ignoring "0 volume but 500 OI" contracts. These can still fill — sometimes the OI was built earlier in the cycle. Check the bid-ask before dismissing.

Where to go next

Frequently Asked Questions

What is good volume for an options contract?

For wheel trades, look for at least 100 contracts traded daily on the specific strike and expiration. Heavy traders prefer 250+ for tighter spreads and faster fills.

Volume vs Open Interest — which matters more?

Both. Open Interest tells you how many positions exist; Volume tells you how active today is. The screener filters on Volume because it best proxies how easily you can fill an order right now.