Chapters in Derivatives & Options Flow
Chapter 5 of 5 · 4 min read
Unusual options activity and how to use it
What a flag on the options tape does and does not tell you.
Options flow highlights contracts with volume or OI far above normal. Unusual activity can reflect large directional bets, hedges or spread legs, and you cannot tell which from a single print.
How to use a flag
- Treat it as a prompt to investigate, not a signal.
- Check whether volume is mostly at one strike, or spread across several legs.
- Cross-check price action, news and OI changes next day.
Key takeaways
- Flow shows activity, not intent.
- Hedges and spreads look like directional bets in isolation.
- Confirm with OI change and price behaviour.
Put it into practice
Open the live page on Market Intelligence and see this concept on real data.
Keep learning
- Open interest, PCR and positioning · Derivatives & Options Flow
Education only, not investment advice. Updated 2026-10-09.