Options Flow
Options flow refers to trading activity across the options market and the analysis of transactions to understand where significant activity may be occurring. Traders may examine: contract, strike, expiration, call or put, trade size, premium, volume, open interest, execution price, and surrounding market conditions.
Why it matters to you
Options flow can help identify unusual activity, large trades and areas where market participants are taking or adjusting exposure. But the trade itself does not necessarily reveal the trader's complete position or intention. Flow tells you what traded. It does not always tell you why.