OPTIONS FLOW · UNUSUAL
2x+
2x volume vs OI sweeps + blocks IV percentile tag
GLOSSARY · WHAT IS OPTIONS FLOW? · v1.0 · LIVE
📚 What is Options Flow?

Volume vs OI—the smart-money positioning leak.

When today's options volume runs 2x the open interest, someone with conviction is positioning aggressively. Pair the flow with the underlying's catalyst score and you have a real edge.

Options flow basics

Options flow is the real-time feed of all options trades executed across exchanges. Every call and put traded by anyone — from retail traders to billion-dollar hedge funds — hits the tape. Options flow analysis focuses on filtering this firehose for the trades that matter: large, aggressive, institutional-sized orders that reveal directional conviction.

When a fund manager buys $2 million in short-dated call options at the ask, that is a strong bullish bet with a ticking clock. Options flow tools capture these trades and present them as actionable signals.

Key options flow signals

Sweep at Ask

Large order split across multiple exchanges, filled at the ask price. The buyer wants speed over price. The strongest conviction signal in options flow.

Block Trade

Single large transaction negotiated off-exchange and printed to the tape. Blocks over $500K in premium signal institutional activity.

Unusual Volume

Options volume exceeding 3x the average daily volume at a specific strike. Often precedes news events or earnings surprises.

Above Open Interest

When daily volume at a strike exceeds the existing open interest, it means new positions are being opened — not existing ones being closed.

How to read an options flow entry

FieldWhat it tells you
Type (Call/Put)Directional bet. Calls = bullish, Puts = bearish (usually)
Strike priceWhere the buyer expects the stock to go. Far OTM = aggressive bet
ExpirationTimeframe. Short-dated = near-term catalyst. LEAPs = long-term thesis
PremiumTotal dollar amount spent. $500K+ = institutional. $50K = could be anyone
Side (Ask/Bid/Mid)Ask = buyer initiated (bullish for calls). Bid = seller initiated
Order typeSweep = urgency. Block = negotiated. Single = standard
Volume vs OIVolume > OI = new positions being opened

Options flow + SEC filings = convergence

Options flow alone can be noisy. The real edge comes from combining it with SEC filing signals:

Catalyst Edge automatically detects these convergence patterns and flags them in the daily scanner.

Common options flow mistakes

See Options Flow + SEC Filings in One View

Catalyst Edge combines options flow data with SEC filing alerts and insider activity for convergence detection you can't get anywhere else.

Open Options Flow

Frequently Asked Questions

What is options flow?

Options flow is the real-time stream of options trades executed across all exchanges. By filtering for large, aggressive trades — sweeps, blocks, and trades above open interest — traders can identify institutional positioning before it shows up in stock price movement. High-premium call sweeps often precede bullish moves; put sweeps can signal institutional hedging or bearish bets.

What is a sweep order in options?

A sweep order is a large options order that is split across multiple exchanges simultaneously to get filled as fast as possible. Sweeps signal urgency — the buyer wants the position immediately and is willing to pay the ask price across multiple venues. Sweeps at the ask are considered the highest-conviction bullish (for calls) or bearish (for puts) signals in options flow.

How do you combine options flow with SEC filings?

When unusual call buying appears in a stock that also has recent Form 4 insider purchases, the convergence creates a high-conviction signal. The insider knows the company fundamentals; the options trader is positioning for a near-term move. Catalyst Edge combines these signals automatically and flags convergence alerts when multiple independent indicators align on the same ticker.

You looked the term up. The console shows it firing on live tickers this morning.

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