ROKU bullish option activity detected 7:13 PST

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Look at zone 7a (7:00-7:15am PST). $201,000 of call buying with small put buying detected. ROKU was trading at $46.80 at the time, and went on to a high of $48.14.

The put/call ratio is frequently misleading because:

1) it doesn’t take into account the price of the option being traded (i.e. total dollars risked)
2) it doesn’t take into account if the option trade is an opening (buying) or closing (selling) trade

Our proprietary option algorithm does focus on both of those telling variables. The algorithm also ignores everything in between the bid and ask, and ignores straddles, buy writes, and spreads. Trades occurring at or above the ask (most likely buying/opening trades) carry much more weight in the algorithm than trades occurring at or below the bid (most likely selling/closing trades). The dollar amounts are then kept as a running total every 15 minutes of the trading day. We also factor in the news of the day, and the setup of the daily chart.

If you aren’t following what the big money is doing, you are trading blind. To get our trades in real time off our proprietary options activity algorithm, we offer a free 7 day trial membership.

Using our options activity algorithm to profit from a gap down too big

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The put/call ratio is frequently misleading because:

1) it doesn’t take into account the price of the option being traded (i.e. total dollars risked)
2) it doesn’t take into account if the option trade is an opening (buying) or closing (selling) trade

Our proprietary option algorithm does focus on both of those telling variables. The algorithm also ignores everything in between the bid and ask, and ignores straddles, buy writes, and spreads. Trades occurring at or above the ask (most likely buying/opening trades) carry much more weight in the algorithm than trades occurring at or below the bid (most likely selling/closing trades). The dollar amounts are then kept as a running total every 15 minutes of the trading day. We also factor in the news of the day, and the setup of the daily chart.

Look at the 5 minute chart of IQ and the running totals of options activity from our algorithm (all times PST) below.


IQ gapped down 6% on news BIDU sold a portion of their IQ shares. The options market didn’t care and during the first 5 minutes there was $246,000 in options buys delta (calls – puts). That was our signal to go long IQ at $29.48. Zone 6c (the first 15 minutes of trading) confirmed our long trade. After the first 45 minutes, option selling started to trump buying and the stock drifted lower, but we were already out with a hefty profit on our first trade of the day.

If you aren’t following what the big money is doing, you are trading blind. To get our trades in real time off our proprietary options activity algorithm, we offer a free 7 day trial membership.

Using our options activity algorithm to profit from a gap and go down

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The put/call ratio is frequently misleading because:

1) it doesn’t take into account the price of the option being traded (i.e. total dollars risked)
2) it doesn’t take into account if the option trade is an opening (buying) or closing (selling) trade

Our proprietary option algorithm does focus on both of those telling variables. The algorithm also ignores everything in between the bid and ask, and ignores straddles, buy writes, and spreads. Trades occurring at or above the ask (most likely buying/opening trades) carry much more weight in the algorithm than trades occurring at or below the bid (most likely selling/closing trades). The dollar amounts are then kept as a running total every 15 minutes of the trading day. We also factor in the news of the day, and the setup of the daily chart.

Look at the 5 minute chart of PSMT and the running totals of options activity from our algorithm (all times PST) below.

PSMT gapped down 8% on a disappointing earnings report. The options market confirmed the gap down after the first 15 minutes of trading (zone 6c) with put buys outweighing call buys by $162,000. That was our signal to go short PSMT at $84.70 when it struggled at VWAP. We covered about 30 minutes later for a $1.00 gain.

If you aren’t following what the big money is doing, you are trading blind. To get our trades in real time off our proprietary options activity algorithm, we offer a free 7 day trial membership.

$1,787 profit today from our proprietary options algorithm

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The put/call ratio is frequently misleading because:

1) it doesn’t take into account the price of the option being traded (i.e. total dollars risked)
2) it doesn’t take into account if the option trade is an opening (buying) or closing (selling) trade

Our proprietary option algorithm does focus on both of those telling variables. The algorithm also ignores everything in between the bid and ask, and ignores straddles, buy writes, and spreads. Trades occurring at or above the ask (most likely buying/opening trades) carry much more weight in the algorithm than trades occurring at or below the bid (most likely selling/closing trades). The dollar amounts are then kept as a running total every 15 minutes of the trading day. We also factor in the news of the day, and the setup of the daily chart.

Look at the 5 minute chart of HUYA and the running totals of options activity from our algorithm (all times PST) below.

HUYA opened flat and traded down the first 20 minutes. But look at the options activity the first 15 minutes (zone 6c). Call buying trumped put buying $280,825 to $-12,000. We made two early buys with a $32.48 average, and the stock exploded higher shortly after on even heavier call buying. We ended the day with a $1,787 profit, $1,170 of it from the HUYA trade. We also had profitable trades off our proprietary options algorithm in IQ, KBH, and FSLR.

If you aren’t following what the big money is doing, you are trading blind. To get our trades in real time off our proprietary options activity algorithm, we offer a free 7 day trial membership.