I am a new trader, so please don’t mind, i don’t know if someone already asked this or not, but in the option chain the volumes are shown it is for option buyers or sellers , or for both , how to come to that decision that, current strike price is bought heavily or sold
It shows each transaction (both). For every buyer there is a seller. As an example, if it shows an open interest of 10, that means 10 contracts were bought by party(s) and sold by other party(s). If a specific strike has high open interest it means a large number of contracts have been bought and sold.
Hey @oNTe4JHvLK, Every transaction has to have a buyer & seller. In the absence of either a buyer or seller, a transaction cannot take place. Observe Open Interest & OI change to get an indication of the market-wide open positions across strike prices. That’ll help.
Since you are new to options trading, I strongly recommend you to read this Chapter about Volume & OI on School of Stocks.