How to use ISEE

1. ISEE only considers the purchases of customers and does not include the purchases made by market makers.

2. Without knowing the Volatility of Both Call and Put, this singular measure does not show any option trader's biases towards the stock。

A rise in open interest indicates new positions are being taken in a particular contract. If they are call contracts, this may be construed as bullish, particularly if the implied volatility on calls also rises (两者缺一不可）. If open interest is dropping, traders are liquidating option positions, which is not necessarily bearish or bullish.

High volume and low volatility indicates that option contracts are being sold. High volume and high volatility indicates option contracts are being purchased.

Theoretically, all options for a stock should trade with the same measure of volatility and at the money calls and puts with the same strike and expiration should have the same price. In practice, the demand for individual option contracts can drive up the price of some of the options on a stock and not others.
Higher call volume does not necessarily mean more call buyers. Call traders may be selling calls. It is not the disparity in volume, but the disparity in the volatility of calls vs. puts that indicates the side (buy vs. sell ) that call traders are taking. If call volatilities are higher than put volatilities, this indicates that traders are buying calls. An excess of call buyers reveals a skew that favors the stock price going up. A similar argument can be made for expensive puts.

Higher volatilities in near the money or in the money calls vs. puts indicates an abundance of call buyers, which is conventionally viewed as bullish. An abundance of volume in the out of the money call, coupled with low volatility, reveals out of the money call sellers. Such activity may not be a strong indicator of direction, except to suggest that options traders do not anticipate the stock rising beyond the out of the money call's strike price. This is a neutral indicator.