Unusual Options Activity (UOA) is one of the most powerful tools for identifying where “smart money” is positioning. In this guide, you’ll learn what makes options activity unusual, how our platform detects it, and most importantly, how to use these signals in your trading.
What is Unusual Options Activity?
Unusual options activity refers to trades that significantly deviate from normal patterns. These are not your typical retail trades—they’re often large institutional orders that stand out from the regular flow of options transactions.
Why It Matters
When you see unusual activity, it often indicates:
- Institutional Position Changes: Large funds adjusting their holdings
- Informed Trading: Traders with potential inside information or superior analysis
- Hedging Activity: Risk management by sophisticated traders
- Event Positioning: Pre-earnings or pre-announcement positioning
- Directional Bets: Strong conviction trades with significant capital
Think of it this way: if you see someone buy 1,000 call contracts for $500,000 three days before earnings, that’s probably not a random bet. Someone with significant capital has strong conviction about the direction of the stock.
What Makes Activity “Unusual”?
Activity becomes unusual when it meets specific criteria that separate it from normal market noise:
- Size: Much larger than average volume for that contract
- Premium: Significant dollar amount invested ($25,000+)
- Execution: Aggressive buying (at ask) or selling (at bid), showing urgency
- Timing: Concentrated activity in a short time window
- Context: Volume compared to open interest, strike selection, time to expiration
Our platform analyzes every single options trade during market hours using these criteria to identify truly unusual patterns. But, remember, we don’t filter out trades based on their expiry. We provide filter options so you can further refine which trades match your specific definition of “unusual”.
Remember: Unusual options activity is a powerful tool, but it’s not a crystal ball. Use it as one component of your trading strategy, always do your own research, and never risk more than you can afford to lose. Nothing we provide on our platform is an automatic buy or sell signal.
Last updated: October 2025
