Look for New Names or Changes in Options Flow

Tip 8: Look for New Names or Changes in Flow

Don't chase after trades that have already been run up (i.e., substantial bullish flows for weeks). The orders are likely in the money (negative OTM %) and adding to positions already deep in the green.

You'll have the best odds if you trade tickers that are either seeing new flow or where the flow has changed directions (from bullish to bearish or from bearish to bullish). Puts that come in after large bull runs can be big winners.