Spotting Smart Money Moves with Unusual Options Activity
Many Tiger users have feedback: I want to see abnormal options, know what smart money is doing, and if there’s any reference? Now Bulk Order is here!
What is a Bulk Order?
Bulk order refers to a particularly large transaction order for an option, with high transaction volume and amount, indicating someone has bet a lot on this option. Generally, the bulk order is more effective before specific events, such as earnings reports, company meetings, or the release of clinical trial results by pharmaceutical companies.
How to Analyze and Use It?
Take META's large option orders on January 28th as an example: Through transaction data, we found a large number of options were bullish on META's future trend—especially three CALL options near expiration, with significantly higher transaction volume than usual and all being out-of-the-money options. Combined with META's upcoming post-market earnings report, we can guess someone was strongly bullish on META's future market. If we agree with this trader’s judgment through chart analysis, we can also try to follow*.
The next day, META opened high and jumped 10%, confirming the previous day’s large order bet*.
*Options that are near expiration or 0DTE carry higher risks than other options, and their prices may experience significant volatility in a short period. Investors should carefully evaluate and use them prudently.
However, things are not always smooth: Bulk order is just reference information (telling us someone is investing this way), but no one knows the actual future trend of the stock price. It’s common for company management to provide information contrary to the earnings report at the conference, so investors are advised to conduct more analysis.
In-depth Learning
If you are still confused about option trading and want to systematically learn more option knowledge or the latest market information, you can join the options communication group:
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Continuous Q&A guidance to help understand large order abnormalities and application of other option strategies
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Regular online/offline lectures to systematically explain option knowledge and advanced strategies
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Communicate, review, and learn with other option investors to expand trading perspectives
Through continuous learning and communication, gradually establish an option trading cognition and method system suitable for yourself.
Capital at risk. Options trading carries high level of risk and may not be suitable for all investors. You should only trade with money you can afford to lose. See FSG, PDS, TMD and T&Cs via our website before trading. Information provided may contain general advice without taking into account your objectives, financial situations or needs.
Tiger Brokers (AU) Pty Limited. ABN 12 007 268 386 AFSL 300767
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
