I’ve been trying to spot unusual options activity, but it’s not easy. Sometimes I feel like I’m missing out on big moves.
Anyone have a reliable method for this? I’ve tried a few indicators, but they don’t always pan out. Wondering if there’s a better way to catch these opportunities.
I feel you on chasing those big moves. Last month, I blew half my account trying to follow ‘unusual activity’ on tech stocks.
Now I focus on option chain volume ratios. Compare call vs put volume for different strikes. Last week, this helped me spot a bullish setup on SPY before a 2% jump.
Still, it’s not foolproof. Always pair with other analysis and strict risk management.
Spotting unusual options activity takes time and practice. Focus on volume spikes compared to open interest and historical averages. Watch for big blocks of calls or puts being bought, especially out-of-the-money ones.
Don’t chase every unusual trade though. Lots of false signals out there. I combine options flow with technical analysis and upcoming events. If everything lines up, then it might be worth a trade.
Remember, by the time retail traders spot ‘unusual activity’, big players have already made their moves. Stay disciplined with position sizing. Even if you catch a big one, never risk more than you can afford to lose on these plays.
I use options flow scanners to spot unusual activity. Caught a 150% gain on AAPL calls last month using this method. Still risky though.
Options flow scanners identify volume spikes. Compare:
• Current volume vs. average
• Call/put ratio changes
• Large block trades
Combine with technical analysis. Backtest strategies. Manage risk carefully.
Been there, trying to catch those big moves. Unusual options activity can be tricky.
Found some success using volume and open interest comparisons. Look for spikes way above average daily volume.
Also, keep an eye on options with high implied volatility. Sometimes that hints at potential big moves coming up.
Remember though, following unusual activity doesn’t guarantee profits. Always do your own research before jumping in.