Jackson, MS
Posts: 34 since Dec 2015
Thanks Given: 1
Thanks Received: 5
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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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