Comparing On-Screen and Block-Trade Options Volume
Summary
The document describes a chart for comparing options trading volume executed on screen with volume executed through block trades. Its purpose is to help users assess which execution channel is contributing to market participation. It notes that large professional traders commonly use block-trade venues, while smaller traders and retail participants more often trade directly through an exchange interface.
The chart can be filtered by trade type and result type, and is described as available in a historical options section for Deribit data. The document does not present a chart, sample observations, volume totals, or evidence that either flow category predicts price movements. The comparison can help characterize participant activity, but volume by execution channel alone does not establish trader identity or intent, and the material gives no method for turning the information into a trading signal.
Key ideas
- The chart separates options volume executed on screen from volume executed as block trades.
- It frames block trading as more common among large professional traders and on-screen trading as more common among smaller participants.
- Users can filter the chart by trade type and result type.
- The document provides no market observations or evidence that either category predicts prices.
- Execution-channel volume alone cannot establish participant identity or trading intent.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.