Scarcity drives options volume. (Sometimes.)

Earlier this year, there was a lot of talk about GM possibly going bankrupt, creating an unusual situation: GM was fully shorted out. In other words, if you shared the belief of many that GM stock was definitely heading south, your first thought -- like many -- might be to short-sell the stock. Problem was, so many had already made that move that there were practically zero GM shares left to borrow for shorting.

That scarcity forced many investors to ask themselves: how do I place a down-bet on GM now? For one thing, you could purchase a put. If you're knowledgeable in at least the basics of options, that door becomes open to you. If not, you're carrying a lighter toolbox than other investors.

Think of it another way. Generally speaking, the most active options tend to be right around-the-money in the nearest-term month. If that's not true in the current marketplace and you observe it, that's interesting information. And if, for example, you notice the action has gravitated to that next year's put, ten points below the current market -- that tells you a lot about the market's fear regarding GM at that moment in time. The point:  if your eyes are at least open to the options market, you can observe some intriguing movements that the equities-only guys may not be aware of.