Volume
Volume is the number of option contracts traded during a given period, usually one trading day.
Volume resets each day and measures activity, while open interest accumulates the contracts still held. A surge in volume often flags news or institutional positioning.
Liquid options with high volume tend to have narrow bid-ask spreads, lowering trading costs.
Example. A strike that trades 2,000 contracts today has a daily volume of 2,000, regardless of how many contracts remain open.
FAQ
Does high option volume mean something?
It signals strong trader interest — sometimes from news or large orders — and usually comes with better liquidity and tighter spreads.
Is volume the same as open interest?
No — volume is the day’s trade count; open interest is the standing total of open contracts.