Unusual options activity can often signal significant shifts in market sentiment or potential price movements for a stock, as it may indicate informed trading by institutions or large investors. Fintel tracks several key metrics to identify such activity.
Identifying Unusual Options Activity
Fintel's platform highlights unusual options activity through various indicators:
- Volume vs. Open Interest: A primary indicator is when the total volume of call or put options for a stock significantly exceeds its current open interest. If call volume surpasses call open interest, it suggests a strong bullish signal, while put volume exceeding put open interest points to a strong bearish signal. This ratio indicates a substantial purchase or sale of options, which is considered unusual.1
- Put/Call Ratio: This ratio compares the total number of open put options to open call options. A ratio greater than 1 typically suggests a bearish sentiment, whereas a ratio less than 1 indicates a bullish outlook. Fintel provides these ratios, updated daily, to gauge market sentiment.1
- Options Flow - Unusual Trades: Fintel also monitors "Options Flow - Unusual Trades" and "Unusual Volume," which can reveal large block trades or other significant options transactions that deviate from typical trading patterns.2 These often represent institutional activity attempting to gain leverage or hedge positions.
- Gamma Squeeze/Pockets: The platform also identifies potential "Gamma Squeeze" candidates and "Gamma Pockets," which are areas where options market makers might be forced to buy or sell the underlying stock to hedge their positions, potentially accelerating price movements.2
To discover the top unusual options stocks in real-time, you can utilize Fintel's dedicated "Unusual Options Activity" and "Options Flow" screens. These tools provide dynamic, up-to-the-minute data that can help identify potential opportunities based on current options market movements.
