Volume

Volume in options trading refers to the total number of contracts that have been traded during the current trading session. It provides insight into a particular option's activity and liquidity level. High volume typically indicates strong interest and can lead to tighter bid-ask spreads, making entering or exiting positions easier. Conversely, low volume may suggest less interest and wider spreads, potentially making trades more difficult or costly. Monitoring volume helps traders gauge market sentiment and the potential ease of trading an option.