SQ Options Flow and Dark Pool Analysis

After looking at a few different tickers with golden sweeps, SQ looks the most promising because the technology sector had bullish premium flow and high OTM %.

F was also a good candidate if we were looking for a bearish trade.

The next step is to walk through why SQ stood out as a potential winner.

We first look for bullish options flow and dark pool activity.

Because we filtered for tickers with 95%+ ticker flow, we already know we’ll see bullish option flow for the current trading day.

The question is how bullish are the flows, and do the dark pool prints tell the same story?

Options Flow Analysis

Two Golden Sweeps in two days for a ticker like SQ is very rare. That alone is a huge bullish sign.

Over the past two days, we have also seen multiple unusual contracts with high Heat Scores.

Looking at the week holistically, we see that Wall Street had mixed sentiments at the beginning of the week.

However, as time passed, the flows became increasingly bullish, and there were no bearish flows on the current trading day.

Given earnings are planned to be released the following day, it seems like smart money is finding out more as the week goes on and building big bullish positions.

After considering all those factors, we can conclude that the options flow seems very bullish.

Next, we want to check dark pool activity.

Dark Pool Print Analysis

There have also been several dark pool prints in the last weeks, which is another bullish sign.

Now that we analyzed the order flow, let's check out any recent breakout signals.