Options volume is the amount of option contracts bought/sold within a definite period. It’s shown on a real time basis.
Along with the open interest indicator, we can emphasize options trading volume. Data providers share information on the number of contracts made every day. Option volume gives us valuable information about the outlook of market movements. It’s important to know that the option volume should be compared with the average daily volume of the stock.
Larger volume and significant percentage change in price indicate that the market is strong at the moment. At the same time, if you see a decrease in volume when the price is still rapidly moving then it can signal a market reversal in the near term.