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How do I read this information?


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How do I read this information?

  #1 (permalink)
Okar19
New york
 
Posts: 48 since Oct 2015
Thanks Given: 10
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Hey guys.

Could someone explain to me what do I see on this screenshot and how can i make the use of it? Im trading for 6 years now mostly stocks but I was recommanded to looking at unusual activity with options. I will be honest, I have no idea what Im looking at and if someone could explain that or share with some source where I can learn more about that it would be awesome!

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  #2 (permalink)
VanDriver
Jackson, MS
 
Posts: 34 since Dec 2015
Thanks Given: 1
Thanks Received: 5

That image looks like One of the retail focused options flow dash board which is supposed to tell you how options are being positioned so you’ll know the upcoming direction of the stock. It does not do what it claims because it cannot do what it claims. It is a nicer looking times & sales window for options that most brokers provide for free with there option trading package.

Reading the info is simple to learn. Stock X had a specific date of 1000 call contracts Trade at the ask and X times normal volume or X times open interest and it’s a sweep. The stock name and expiration date tell what the option is and how soon the event should happen. The size And sweep or block order implies big money behind the move. Volume versus open interest attempts to tell you open or closing order. Trade at the ask or bid also attempt to show if it’s a buy or sell.

Reading the data is fairly straightforward, but using the data they are showing you cannot accurately revealed the upcoming direction of the Stocks movement.Here is the crux of the matter: it does reduce the data to unusual activity but it cannot determine if the order is an entry or exit. It cannot because the Exchange does not release that information.

I recommend you learn basic and advanced option strategies If you are interested in options Instead of trying to watch the options flow time and sales window.

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  #3 (permalink)
Okar19
New york
 
Posts: 48 since Oct 2015
Thanks Given: 10
Thanks Received: 10



VanDriver View Post
That image looks like One of the retail focused options flow dash board which is supposed to tell you how options are being positioned so you’ll know the upcoming direction of the stock. It does not do what it claims because it cannot do what it claims. It is a nicer looking times & sales window for options that most brokers provide for free with there option trading package.

Reading the info is simple to learn. Stock X had a specific date of 1000 call contracts Trade at the ask and X times normal volume or X times open interest and it’s a sweep. The stock name and expiration date tell what the option is and how soon the event should happen. The size And sweep or block order implies big money behind the move. Volume versus open interest attempts to tell you open or closing order. Trade at the ask or bid also attempt to show if it’s a buy or sell.

Reading the data is fairly straightforward, but using the data they are showing you cannot accurately revealed the upcoming direction of the Stocks movement.Here is the crux of the matter: it does reduce the data to unusual activity but it cannot determine if the order is an entry or exit. It cannot because the Exchange does not release that information.

I recommend you learn basic and advanced option strategies If you are interested in options Instead of trying to watch the options flow time and sales window.

I have to disagree in some way because there were huge puts on HTZ for example before chapter 11 happened.

Other than that I have no idea what you just tried to explain to me lol I feel like im learning to trade from the beginning.

I got big headache today trying to understand it. Any source that would explain it from the beginning?

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Last Updated on May 26, 2020


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