You should have a core Trading Strategy and then use UOA as just an additional tool.
UOA should be used to supplement an existing strategy. Simply put, you can get profitable trade ideas!Ħ Facts You Need To Know & Accept Before You Trade UOA This group is known collectively as the “Smart Money”. So, tracking their daily activity gives important insights into what the smart money is doing with regards to a particular stock, sector or even the whole market and you can benefit from tracking this info. This group is savvy, well informed and use a variety of different strategies. The anomalies that count as unusual include large $ trades, large trade size relative to Open Interest, Sweeps & repeat buying.Ī lot of services sell Order Flow data but very few actually sell real UOA.Ī large amount of the daily volume in the options market is produced by institutions, hedge funds , successful private investors, and other experienced traders. Most people tend to confuse order flow with unusual activity but, as you will see, they are not quite the same. Options order flow is just the real time transactions in the Options markets. Unusual Options Activity is the occurrence of anomalies in Options Order Flow. I feel like I have the authority to do this because I have been trading UOA for many years now and have built many filters and Unusual Options Activity scanner s over the years. And I want to correct some of the myths out there. 
There are numerous sources online that are just outright misrepresenting what UOA is and how it is used.
Unusual options activity trading how to#
The purpose of this article is to break down the concept of Unusual Options Activity into simple language and show you exactly how to use it profitably. My name is Chris Corwin Gayle and I am a trader and Trading System developer.
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