Options Flow

Overview

The Options Flow feature on Options Desk is a unique tool that combines both futures and options data to predict market direction. It provides a comprehensive analysis of the market by updating data every three minutes, helping traders make more informed decisions. Below is a detailed description of the features available in the Options Flow.

Features of the Options Flow

1. Futures Data Analysis

The Futures Data component of the Options Flow analyzes price and Open Interest (OI) changes at regular intervals:

• Updates every 3 minutes to reflect the latest market conditions.
• Based on price and OI movements, it identifies patterns such as:
  • Long Build-up: Indicates bullish market sentiment.
  • Short Build-up: Indicates bearish market sentiment.
  • Long Unwinding: Signifies a reduction in long positions.
  • Short Covering: Represents closing of short positions.

2. Options Data Analysis

The Options Data analysis allows traders to focus on specific ranges of strike prices:

• Users can select the range of strike prices for in-depth analysis.
• Data is displayed based on key parameters such as:
  • OI (Open Interest): Shows the total number of outstanding contracts.
  • OI Change: Indicates how much the OI has increased or decreased.
  • Volume: Represents the total trading volume for selected strikes.
  • Turnover: Displays the total value of the options traded.
• Put/Call Ratio (PCR) and the difference between call and put data are calculated to determine the market direction.

3. Graphical Representation

The Options Flow data is not just available in a tabular form but can also be visualized graphically:

• Click on the Graph button to view the options data in a graphical format, making it easier to interpret trends and patterns.
• The Replay feature allows you to view intraday data and see how the market evolved throughout the day.

Conclusion

The Options Flow feature is a powerful tool that combines futures and options data to provide a real-time view of the market direction. With its frequent updates and ability to display data both in tabular and graphical form, it offers traders a dynamic way to analyze the market and make well-informed trading decisions.