Cheddar Flow

Scanning for Unusual Options Flow Activity with Cheddar Flow | #trading #optionstrading

Get our FREE Correlation Tool: Quickly and easily find stocks to trade. This tool is perfect for traders of ALL experience levels.👇 https://mastersintrading.com/correlation/ FREE weekly tips and strategies sent straight to your inbox! Masters in Trading DIGEST👇 https://mastersintrading.com/digest/ Try Cheddar Flow FREE for 7 days 👇 https://www.cheddarflow.com?fpr=mit23 Unusual Options Activity Get our FREE Correlation Tool: Quickly find stocks to trade and gain an edge with one click! 👇 What is unusual options activity? #optionstrading #trading Unusual options activity is simply a higher-than-normal volume of options contracts being traded in the underlying stock. This usually happens when there is news or an event that is pushing the price of the stock in either direction. When there is unusual options activity, it means that somebody knows something that the rest of the stock market doesn’t know yet. And as we all know, knowledge is power in the stock market. This activity is often seen as a signal that something big is about to happen with the stock, and savvy investors will often piggyback on these trades to make a quick profit. How to trade unusual options activity? The first step is to identify which stocks have unusual options activity. You can do this by visiting any major financial website such as Yahoo Finance or CNBC, and looking for the “unusual options activity” section. Once you have a list of stocks with unusual options activity, you need to do your own due diligence to find out why there is suddenly so much interest in these stocks. Is there an earnings report coming out? A new product being launched? Once you have done your research and are comfortable with your findings, you can initiate a trade accordingly. Remember, always use stop-loss orders to minimize your risk! Or better yet, buyers of options (calls or puts) have a fixed amount of risk. Trading options with known risk is the same as trading underlying stock with a stop order. How can I spot unusual options activity in the stock market? Options traders use a variety of methods to identify unusual activity in stock options. One common technique is to compare the volume of options traded with the average daily volume. High relative value on the underlying stock might present an unexpected catalyst. If the options volume is much higher than normal, this may be an indication that something is happening in the underlying stock that option traders believe will affect the price. Another technique is to compare the prices at which options are being traded with the prices at which they were trading previously. If there is a sudden change in option prices, this may be an indication that something is happening in the stock. Traders can do the same thing when comparing implied volatility to the historical volatility that options contracts have traded. https://mastersintrading.com/correlation/ Weekly MIT Digest: Gain an edge by getting the most timely tips and strategies possible 👇 https://mastersintrading.com/digest/ Get Trades, Education, Expert Support and the Backing of a Community 👇 https://mastersintrading.com/store/community/ 🔴 Subscribe for more Unusual Options Trading Activity Content: https://www.youtube.com/c/JonathanRose?sub_confirmation=1 If you’re tired of mainstream money ideas… sick of mediocre returns… and ready to take your investing to the next level… We’d like to introduce you to Mastersintrading.com, an independent financial trading educator unlike any other. If you're an aspiring full-time trader that wants to learn exactly how market makers value stock options and how futures traders find trades using a relative value approach, make sure you subscribe to my channel right now. My channel focuses on real-life trading examples, actionable trading tips, and "in the trenches" reports from subscribers just like you. GET THE FREE MIT DIGEST ↳https://mastersintrading.com/digest/ More from Jonathan Rose: ↳ https://mastersintrading.com/ WRITE TO US! ↳ support@mastersintrading.com ✅ Let’s connect: Twitter – @Mastersintradng https://twitter.com/Mastersintradng Our Success Stories: https://mastersintrading.com/success/