Are Options Flow Trades Buys or Sells?

byInsiderFinance Teamon
A professional trader analyzing options flow buy orders on a bright screen, clearly marked to show bullish or bearish intent

Option flow is an excellent leading indicator of short-term market direction, and InsiderFinance brings the trades that matter front and center with built-in intelligence.

InsiderFinance real-time options flow with Golden Sweeps and Unusual Options Activity

Are Options Flow Orders on InsiderFinance Buys or Sells?

The InsiderFinance dashboard displays options flow for single-leg orders filled at or above ask/offer. In other words, the dashboard shows buy orders.

Institutional order flow for ask activity (i.e. the "purchasing side") is a very powerful leading indicator, and our proprietary filtering algorithm only shows orders where the trader’s intent is clear:

  • Call orders imply bullish intent (i.e. buying call premium)
  • Put orders imply bearish intent (i.e. buying put premium).

Why Focus on Buy Orders?

Options Flow Order Side shown on InsiderFinance order flow dashboard at or above ask
  • Clarity of Trader Intent: Each buy order on our platform, labeled as ‘A’ for At Ask and ‘AA’ for Above Ask, signifies a trader’s strong bullish sentiment. A trade executed Above Ask indicates an investor’s urgency and willingness to pay a premium, highlighting extreme confidence in the potential upside of the stock.
  • Precision in Market Sentiment Analysis: Buy orders, whether they are calls or puts, provide a clear view of the market sentiment. Call orders signify a bullish outlook, predicting upward price movement, while put orders suggest a bearish stance, expecting prices to fall. This direct correlation between order type and market view simplifies your trading decisions, providing a straightforward interpretation of market trends.
  • Complications with Sell Orders: Sell orders can be ambiguous. Are traders closing positions to capitalize on gains, initiating shorts, or merely collecting premiums? This uncertainty can cloud judgment, making it challenging to discern the true market direction.

Simplified Decision-Making

At InsiderFinance, we prioritize simplicity and clarity. By focusing exclusively on buy orders, we remove the guesswork, providing you with transparent and actionable data.

Our proprietary filtering algorithm ensures that only orders with a clear bullish or bearish intent are displayed, allowing you to make informed trading decisions with confidence.

That's why we focus on the buy side of things.

We keep it straightforward so you always feel confident in the trader's intent and make decisions with clear information.

There’s no way to tell if an order executed at mid-market was bought or sold, so InsiderFinance does not display orders executed at mid.

While we recommend focusing on the buy side, we'll also be adding sell (bid) orders soon!