Free Options Flow: Complete Guide
Understanding options flow analysis without expensive subscriptions
Options flow tracks large, institutional-sized options orders in real-time. When a hedge fund buys $2M in call options on a stock, that order shows up in the flow. By watching these orders, you can see where institutional money is being deployed before it shows up in stock price movements.
Key Order Types
- Sweeps — Aggressive orders that hit multiple exchanges simultaneously to fill quickly. Often indicates urgency.
- Blocks — Large single-exchange orders (usually 100+ contracts). Often indicates institutional positioning.
- Splits — Large orders broken into smaller pieces across time. Harder to detect but still visible in aggregate flow.
- Opening vs Closing — New positions (opening) carry more signal than existing positions being closed.
Reading the Flow
Not all large options orders are bullish or bearish. Context matters: • Calls bought at the ask = bullish (paying up for exposure) • Calls sold at the bid = bearish (selling exposure, possibly hedging) • Puts bought at the ask = bearish (paying for downside protection) • Puts sold at the bid = bullish (selling insurance, expecting stability) The premium, timing, and strike selection all provide additional context.
What iGotFomo Tracks
Our system aggregates options data from 5 independent sources (CBOE, Yahoo, Nasdaq, Barchart, OCC) to compute: • Put/Call Ratio — volume, open interest, and premium-weighted • Implied Volatility — ATM IV and term structure (contango vs backwardation) • Max Pain — the price at which the most options expire worthless • GEX — gamma exposure showing where dealer hedging creates support/resistance • Unusual Activity — sweeps and premium outliers vs historical norms