Short answer
Volume is how many option contracts traded today. Open interest is how many contracts remain open after yesterday’s close. When today’s volume is far above open interest at a strike, it suggests new positions are being opened — one of the clearest signs of unusual activity.
Source · Rebel Intelligence. A large order can be a hedge, not a bet.
Volume greater than open interest at one strike, in a short timeframe and paid at the ask, points to fresh, urgent buying. The next day’s open interest change confirms whether those trades were opened or closed.
It means many contracts are outstanding, which matters for dealer hedging and gamma levels near expiration.
Yes — when traders are closing existing positions.
Once per day, before the next session opens.
Educational only, not investment advice. Options involve risk and are not suitable for all investors. See how Intel is reviewed.