Case Study: Small Options Flow As Leading Indicator

by InsiderFinance Team on 03/30/2022

Many traders focus on option flow orders with high premiums and are quick to dismiss small orders.

However, It's not always about big premiums.

Small orders can be leading indicators that big orders will be pouring in soon, and big flows almost always start with a small order. 

The below case studies demonstrate why you should pay close attention to the small orders, particularly unusual ones.

AHT

The AHT screenshot below came straight from the Unusual Top Tickers page on 5/25 and was sent to our members as part of the Morning Momentum Actionable Snapshot Alert.

The contracts have premiums mostly under $30K and contract prices around 30 cents. Those contracts ended up with a 640% max profit!

You can see in the screenshot above that the contract price on the $5 strike is steadily increasing along with implied volatility.

Smart money didn't have to pay as much for the contract because they bought it before everyone else did. 

Those are the types of trades that we show you on the service that most options flow dashboards would have completely missed.

Did you know that most options flow dashboards filter out any flows with premiums under $30K?

They’re missing important flows! That’s just one example of how our proprietary filtering algorithm gives you an advantage you won’t find anywhere else.

We also see the same pattern with puts as demonstrated in the RLX case study below.

RLX

The RLX screenshot below came straight from the Sweeps Top Tickers page on 6/16 and was sent to our members as part of the Morning Momentum Actionable Snapshot Alert.

The orders coming in start small at around $30K with contract prices around 50 cents.

Those contracts ended up with a 120% max profit overnight!

You can see in the screenshot above that the contract price on the $7.5 strike is steadily increasing along with implied volatility.

This is another example where small orders lead to big flows (and big gains) and also another example where smart money didn't have to pay as much for the contract because they bought it before everyone else did.