TRADEPRO Academy is proud to present a video on how to use Quant Data (an options order flow platform) to day-trade Options with order flow and first great Options day trades.
Throughout the video, we go over a lot of main concepts for options day trading with order flow, how to adjust your Quant Data filters, how to survey the market for opportunities, and how to take those opportunities.
The first concept is setting up an Order Flow filter. Options traders want to set up a filter for the flow that comes in to see all of the “useful” flow. Meaning I want to day trade with direction, so I want to see all the options flow that is bought! Options flow can be sold or bought, seeing both is helpful, however, I want to stick to a single direction.
Here are the filters used:
- Premium is greater than $50,000
- Trade side is Above Ask
Seems short and sweet but that is all we want. We could filter only for sweeps, but I want to see massive orders coming in as blocks as well!
In this case, when you weed out the premium, you see only larger players moving the market, which is the ideal scenario to follow the whales.
After you turn the filter on, we want to SCOPE. You want to find repetitive flow coming in on ONE specific stock and analyze the chart based on that stock. Ideally, it is a short expiry because that means the buyers of those calls or puts are day trading them as well.
In most cases, the breakout trade is the better opportunity if you are following a large flow. Make sure you know where your key support and resistance is!
Watch the remainder of the video below to get the in-depth analysis and trade example on NFLX and how we used Options Order Flow to find an amazing move on the name.
Day Trading Using Options Order Flow – Quant Data
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The information contained in this post is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable for your own financial situation. TRADEPRO AcademyTM is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.