Metrics & Analysis

What is Options Flow?

Real-time tracking of large option orders to identify institutional activity.

📖 Complete Definition

Options flow refers to the stream of real-time option orders, particularly large or unusual trades that may indicate institutional activity or "smart money" positioning. Traders analyze flow to identify potential market direction, unusual activity, and significant bets. Flow data includes sweeps, blocks, and unusual volume.

💡 Examples

  • Large sweep order: 5,000 contracts bought aggressively hitting multiple ask prices
  • Unusual options activity: 10x normal volume on specific strikes

Frequently Asked Questions

How do I use options flow in trading?

Look for large, unusual orders aligned with your thesis. Sweeps (aggressive buys) and blocks (large single trades) from institutions can signal conviction. Use flow as confirmation, not the sole decision factor.

Put Your Knowledge to Practice

Use our free options tools to analyze trades, calculate Greeks, and visualize profit/loss scenarios.

Options Flow - Definition & Examples | Options Trading Glossary | Options Education - ImpliedOptions