Question: What Does Unusual Option Activity Mean?

What is a golden sweep?

So, what is a Golden Sweep.

— This is unique to our system.

It’s basically a very large opening sweep order.

These orders are highlighted on our dashboard automatically as they are placed..

What does sweep bullish mean?

If a Sweep on a Call is BULLISH, this means the Call was traded at the ASK. … Multiple sweeps at the same exact strike price where the price of the option is going up is very bullish, as they continue to purchase more options while the price is going up.

Is Unusual Options Activity good?

High-quality unusual options activity doesn’t occur every day. However, when those trades do work, they often give the strongest rates of return. Regardless, using unusual options activity data can be helpful in your decision-making process when you’re trading.

Is follow the smart money worth it?

Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. It is written in easy to understand language and filled with real life examples and spot-on analogies.

Is a call credit spread bullish?

Credit put spread: A bullish position with more premium on the short put. Credit call spread: A bearish position with more premium on the short call.

Which option strategy is most profitable?

Option Selling Strategies Selling OptionsOption Selling Strategies Selling Options is by far the most profitable strategy in the long term, with the lowest risk.

Is selling a call bullish or bearish?

Thus, buying a call option is a bullish bet–the owner makes money when the security goes up. On the other hand, a put option is a bearish bet–the owner makes money when the security goes down. … selling options: Buying a call: You have the right to buy a security at a predetermined price.

What does bullish call activity mean?

A bull call spread consists of one long call with a lower strike price and one short call with a higher strike price. Both calls have the same underlying stock and the same expiration date. A bull call spread is established for a net debit (or net cost) and profits as the underlying stock rises in price.

What is the meaning of put call ratio?

Definition: Put-call ratio (PCR) is an indicator commonly used to determine the mood of the options market. Being a contrarian indicator, the ratio looks at options buildup, helps traders understand whether a recent fall or rise in the market is excessive and if the time has come to take a contrarian call.

What is a Call sweep?

Sweeps are large orders, meaning the trader who placed the order has a heavy bank roll, i.e. “smart money.” Sweep orders indicate that the trader or investor wants to take position in a rush, while staying under the radar – Suggesting that they are believing in a large move in the underlying stock in the near future.

What is options order flow?

For me, option order flow, or the flow, is one of the best options trading resources out there. … Trade Alert tells us where big option trades are being made. Analysis includes the size of the trade, the type of the trade (buy or sell), and the name that is being traded.

What is option flow?

Options flow data is the term for options data that is sometimes also referred to as the following: options order sentiment, unusual options activity, option sweeps, or simply order flow.