Lesson 1 of 6 · Reading the Tape
What is options flow?
Flow is a record of what people paid.
Whenever an options contract trades, the exchange logs the ticker, contract, size, price, and side. Options flow is the live feed of those records. Every print that appears was a real transaction at a real price. Billions of dollars move through this feed each day.
The four parts of every alert.
Part one: the ticker and contract, telling you what traded. Part two: how it was bought. Part three: the total premium paid. Part four: today's volume versus prior open interest at that strike. These four fields are what the data gives you.
This one is an animated diagram in the app. See it in Vero.
Flow tells you the transaction, not the reason.
The same print could be a directional bet, a hedge against an existing stock position, or a spread leg. The data records the outcome, not the intent. Keep that gap in mind before you draw conclusions from any single alert.
A flow alert shows a $400K AAPL call. What does that notional figure represent?
Show the answer
B. What was paid for the contracts. Notional premium is what was paid, not a projected gain or a measure of existing positioning.