Lesson 6 of 6 · Reading the Tape
Scoring an alert
Four questions, in order.
Score an alert by working through four checks. Is it a sweep or a block? What is the notional premium? Does today's volume exceed prior open interest at that strike? Has the same ticker and strike printed in the same direction before today? The more boxes checked, the stronger the case.
Map the questions to a real alert.
This NVDA alert answers three of the four. Field two: SWEEP AT THE ASK. Field three: $1.2M premium. Field four: VOL 4,200 vs OI 1,150, so today's volume clears prior open interest. The fourth check, whether this ticker printed the same way earlier, is done outside the card.
This one is an animated diagram in the app. See it in Vero.
Run the checklist on the tape.
NVDA call sweeps printed twice at the same strike within 20 minutes. Volume at that strike already exceeds prior open interest. Total premium clears $1M. Three of four factors line up. Not a guarantee, but a coherent story worth tracking.
| Ticker | Contract | Type | Premium |
|---|---|---|---|
| NVDA | 145C 10/18 | SWEEP | $1.2M |
| AAPL | 225P 11/15 | BLOCK | $840K |
| NVDA | 145C 10/18 | SWEEP | $960K |
| SPY | 570P 10/14 | SPLIT | $310K |
What a weak score looks like.
One large call sweep, volume below prior open interest, no prior prints in the same direction today. That is one box checked: size. Everything else is absent. A single factor is not a case. File it and watch for the next print on the same name.
One large call sweep on a ticker. Volume is below prior open interest. No other prints today. Score?
Show the answer
C. Weak, only one factor in its favor. A single print with volume below prior open interest has only size going for it. One box checked is a weak score.