Barchart, a provider of market data and trading technology to active traders and investors, has announced the launch of Options Flow, a powerful market intelligence tool for market sentiment analysis, as well as stock and options trading. Options Flow allows traders and investors to find an edge in the market by tracking the largest options trades on the day, and analyzing corresponding data to obtain a view on market sentiment and potential volatility.
“Options Flow can transform the way traders and investors approach the market by offering unique insights into potential trading opportunities through the identification of very large option trades,” said Jean Baker, product manager at Barchart. “By meticulously scanning our equity options feed to pinpoint the largest trades across US equity option puts and calls, we’ve created a tool to find these trades and make the data available to any investor or trader,” added Baker.
Options Flow is designed to offer market participants valuable insights, including:
- Market Sentiment Analysis: Gain insights into market sentiment by tracking large and unusual options trades. Quickly assess whether traders are bullish or bearish, allowing you to adjust your trading strategy accordingly.
- “To Open” Trades: Barchart highlights whether a trade is marked as "To Open" based on the trade size compared to volume and open interest. This information can help traders infer directional bias, especially when large traders or institutions are involved.
- Volatility Vision: Predict potential volatility movements in underlying assets by monitoring options trading activity. A surge in options trading, particularly in a specific expiration period, can provide valuable clues.
- Identifying Unusual Activity: Keep an eye on sudden surges in volume or changes in open interest, which could indicate institutional action or upcoming news events, allowing users to spot potential opportunities and risks.
- Risk Management: Observe hedging strategies employed by traders with significant capital at risk and consider changes to your own risk management practices to protect your portfolio from potential market fluctuations.
- Trade Idea Generation: Options Flow can serve as a trade idea and strategy generation tool. Analyze the most active options contracts to discover potential trades, such as options spreads, income generating strategies, or speculative positions.
Options Flow is included with a Barchart Premier membership. Users can access a free 30-day trial that allows you to explore this new feature, along with other Barchart tools, like option screeners and historical options data.
