End-to-End Unusual Options Activity Example

Now that you know all the tools available to find and validate trade ideas, let’s walk through an end-to-end example of choosing a winning trade from the InsiderFinance Dashboard.

We’ll be looking for tickers with as many bullish data points as possible to increase our likelihood of success on the trade.

This example analysis follows the same process in our How to Find Winning Trades section.

How to Find Winning Trades

At a high level, here's the process we'll follow:

1. Filter out the noise
2. Find trade ideas using the Flow Dashboard
3. Validate the trade idea using the Ticker Research page

We’ll focus on finding a trade idea using Unusual Options Activity, but there are many ways to identify trade ideas depending on your trading style (using the same general process).

In our experience, unusual options trades tend to move the “slowest” (1-3 days to play out), so there’s more time to research and time for a good entry.

Trade Entry Checklist

Generally, the more data points supporting a trade idea, the higher the probability of success.

When looking for trade ideas on individual tickers, we look for bullish trades with the most support behind them.

This is the "checklist" we typically like to follow before entering a position:

Repeated calls and close to 0% put flow

• Close to 0% put flow means that Wall Street agrees that the price will rise

Recent dark pool activity‍

• Green highlights or gold boxes are ideal‍

Strong technicals‍

• 4-point confirmation on the 1-hour chart and ideally also the 4-hour chart

Positive news sentiment

• Mostly positive sentiment and no major red flags in recent headlines

Bullish sector activity

• Bullish sector sentiment helps you avoid trading “against the current”

High Heat Scores

• Trades were made with high conviction

For strong technicals, we typically like to see bullish signals on both the 1-hour and 4-hour charts. A bullish signal on the daily chart is a great bonus.

If we don't see bullish signals on both, we typically create an alert on the chart that hasn't turned bullish yet and enter when it does.

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