Sweeps are sophisticated trades and can indicate that a more advanced investor or firm is at work. Intrinio tracks four kids of unusual options activity: Sweeps, Blocks, Large Trades, and Volume.Īn options sweep is a market order split across all exchanges to take advantage of the best prices for a given option contract on each individual exchange. How does Intrinio Define Unusual Options Activity If a trader has access to unusual options activity they don’t know what will happen with the stock but they do know where to focus their attention. It could also mean that institutional investors with lots of money and inside information know something about a company and are moving to take advantage of that knowledge. Unusual options activity could mean there was significant news about a stock, such as earnings being reported, and so traders are reacting to the news. The key thing to remember is that unusual options activity is an indicator that something weird is happening with the stock and traders should pay attention. Traders and data providers can create their own definitions of how large a trade must be before it is unusual or how much volume must deviate from the average before it is labeled as unusual. What constitutes unusual activity is subjective. This difference can be defined in any number of ways, but typical definitions include higher trade volume than normal, large trades being split into smaller lots, or trades being split across exchanges. Unusual options activity occurs when options contracts begin trading in a pattern that is different than normal.
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