Option: Unusual Volume, open interest scans


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I am now here and kind of new to the TOS platform.  Actually it has always intimidated me so I steered clear of it.  But I now am trying to embrace and learn. Thank you for this wonderful platform to do so. My question is there are many services that charge to alert us of unusual option activity giving us a clue as to price projections or good/bad news coming or a potential larger than normal move. Is there a way to scan for this?

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Posted by (Questions: 1, Answers: 0)
Asked on February 13, 2017 5:18 am
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This question has been asked in various forms. The straight is no. I have not found a way to create any scans that detect unusual volume for options. That doesn’t mean it can’t be done. Only that at this time I have not discovered whether it is possible.

( at February 13, 2017 9:00 am)
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Hi Pete / Ryan;

I came across this code that I use in my watch-list & when I scan for options, hope it helps.

The column turns RED & reads “volume vs OI” when Vol is greater that OI.

Thanks Pete for all you do.

 

def alert = volume > open_interest;
AddLabel(yes, if alert then “volume vs OI” else “.”, color.BLACK);
AssignBackgroundColor(if alert == 1 then color.RED else color.LIGHT_GRAY);

 

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Posted by (Questions: 3, Answers: 3)
Answered on February 14, 2018 4:19 pm

im new to TOS platform and came across this post. Can you please explain where do I enter this code on the platform?

Tthanks

Regards
Rowan

( at March 10, 2018 3:49 am)

After watching a few of our free tutorials on custom watchlists you should understand where and how to apply that code provided by Joel: https://www.hahn-tech.com/category/tos/watchlists-tos/

( at March 10, 2018 8:33 am)

As I added this to TOS editor, I received an error that :AddLabel is not allowed in this context:

def alert = volume > open_interest;
AddLabel(yes, if alert then “volume vs OI” else “.”, color.BLACK);
AssignBackgroundColor(if alert == 1 then color.RED else color.LIGHT_GRAY);

THis is in option scan. Can you please advise? Thx

( at January 21, 2019 10:47 am)

Don’t miss the details provided by Joel when he posted this. He uses this as a “watchlist and a scan”. The first line is the scan. The last two lines are for the watchlist. If you are applying this to a watchlist, use all three lines. If you are applying this as a scan, only use the first line. I know for someone new to writing Thinksript this is not very obvious. So I just wanted to clear this up for you.

( at January 21, 2019 5:05 pm)
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What about a scan that shows a stock option with volume greater than open interest. Be able to search based on a call or put and then for open interest value = XX (be able to input your range of values) and volume is % or a certain amount like 100+, 500+, 1000+, etc. higher than the OI.

Look at TSLA (attached) The call side volume is higher than OI. Can a scan be created to show this if the parameters you set before hand match?

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Posted by (Questions: 16, Answers: 34)
Answered on January 8, 2018 10:51 pm
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In response to a suggestion offered by Ryan on 1/8/18.

Stock Hacker is made to scan for stocks, not options. So any scan you run will only return a list of stocks, not options. The only tool we can use for your suggestion is called Options Hacker.

Attached screenshot shows one method that may work. But you have to accept there is some amount of overlap in the comparison between volume and open interest. What I mean is that here I have set open interest to a range of  1,000 to 2,000 while volume is set to a range of 2,000 to 3,000. You will pick up options where the volume is twice the open interest: (OI = 1000 & Vol = 2000). But you will also pick up options where they are equal: (OI = 2000 & Vol = 2000)

Notice we can add Study Filters to the Option Hacker scanner. You can use the condition wizard to build a filter like this:

volume is greater than OpenInterest()

And by logical extension you would think you could just multiple OI by 2 to reach your goal:

volume is greater than OpenInterest() * 2

However I have run some test scans using only this filter. It doesn’t work. It doesn’t work when you use Greater Than and it doesn’t work when you use Less Than. (and I tried it without adding the * 2 to open interest) This tells me it simply does not work. Period.

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Posted by (Questions: 36, Answers: 1798)
Answered on January 9, 2018 9:26 am