Chasing Unusual Options Activity

no free plan for that : The reality is that real-time, comprehensive UOA data is expensive to aggregate, which is why most quality sources charge for it. The free options give you glimpses, but not the full picture.

SwaggyStocks is probably the best bet for a truly free, no-strings-attached UOA scanner that you can check daily. It’s not as robust as premium services, but it’s legitimately free and functional.

TradingView doesn’t have robust built-in UOA tools, but you can:
1. Use TradingView for Charting + External Scanner

Find UOA on external tool (like SwaggyStocks)
Pull up the underlying ticker on TradingView
Analyze the chart for confirmation
This is honestly how most traders use it

 

Unusual Whales give some free signals on FB to bait new custs.

Plans from 25 to 99 USD/month :

https://unusualwhales.com/options-screener
https://www.youtube.com/watch?v=eqiGixM6i5o

https://marketchameleon.com/Reports/UnusualOptionVolumeReport

https://www.barchart.com/options/unusual-activity/stocks

https://optionstrat.com/features

https://blackboxstocks.com/features/

 

 

Analysing UOA : let’s break down how to tell if unusual options activity is a directional bet (predicting movement) vs hedging (protecting existing positions).

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Key Differences at a Glance

Directional Bet	Hedging
Predicting price movement	Protecting against loss
Wants options to profit	Hopes options expire worthless
Typically aggressive execution	Often passive execution
Aligns with desired direction	OPPOSITE of actual position

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How to Identify HEDGING Activity

1. Put Buying on Strong Uptrends

Classic hedge signal:

• Stock has been rallying strongly (10-20%+ move)
• Sudden large put volume appears
• Puts are ATM or slightly OTM
• Low urgency (executed at MID or BID, not ASK)

What it means: Long shareholders protecting gains, NOT betting on a crash

Example:

• NVDA rallies from $120 → $145 in 2 weeks
• Large $140 put volume appears
• Interpretation: Likely hedge, not bearish bet

2. OTM Puts with Long Expiration

Protective put characteristics:

• 3-6+ months until expiration
• Strikes 5-15% below current price
• Modest premium relative to notional value
• Volume spreads across multiple strikes

What it means: Portfolio insurance, not directional speculation

3. Collar Strategies

Look for simultaneous activity:

• Buying puts (downside protection)
• Selling calls (financing the puts)
• Both executed together

Red flag for hedging: When you see both puts AND calls with unusual volume

4. Institutional Hedging Patterns

• Round lot sizes (100, 500, 1000+ contracts)
• Executed during regular hours (not pre/post market)
• Clustered around major support/resistance levels
• Correlates with 13-F filing positions

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How to Identify DIRECTIONAL Bets

1. Aggressive Execution = High Conviction

Bullish directional signals:

• Calls bought at ASK price (paying up)
• Large sweeps across multiple exchanges
• Immediate execution (not limit orders waiting)
• Rising implied volatility on calls

Bearish directional signals:

• Puts bought at ASK price
• Aggressive sweep orders
• Increasing put IV while call IV stable/falling

Why this matters: Hedgers are patient (they’re insuring, not speculating). Directional traders pay up to get in NOW.

2. Near-Term Expiration (High Urgency)

Directional bet characteristics:

• 0-3 weeks until expiration
• Concentration in 1-2 strikes (not spread out)
• ATM or slightly OTM (not deep OTM lottery tickets)

Logic: Hedgers buy time (3-6 months). Speculators want quick moves (days/weeks).

3. Flow Aligns with Technicals

Strong directional signal when UOA confirms chart:

Bullish example:

• Stock breaking out of resistance
• Large call sweeps hit
• Volume increasing on underlying
• = Directional bet on continuation

Bearish example:

• Stock breaking key support
• Large put buying at ASK
• Underlying showing distribution
• = Directional bet on decline

4. Single-Sided Flow (No Offsetting Trades)

Directional bet pattern:

• Only calls OR only puts (not both)
• No corresponding opposite position
• Concentrated premium in one direction

Hedge pattern:

• Both calls AND puts active (collars, spreads)
• Balanced premium flow

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Advanced: The « Greek » Tell

Delta Reveals Intent

Hedging typically uses:

• Lower delta options (0.30-0.50 delta)
• Further OTM strikes
• Less capital efficient (cheaper insurance)

Directional bets use:

• Higher delta options (0.50-0.70+ delta)
• ATM or near-the-money
• More capital efficient (maximize gains)

Vega Exposure

Directional traders often:

• Buy options BEFORE catalysts (earnings, FDA, etc.)
• Betting on IV expansion (vega positive)
• Want volatility to increase

Hedgers typically:

• Buy options AFTER volatility spikes
• Less concerned with IV changes
• Just want protection

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Real-World Example Breakdown

Scenario: AAPL Unusual Put Activity

Data:

• AAPL trading at $185
• 50,000 contracts of $180 puts (30 DTE)
• Executed over 2 hours
• Stock up 3% on the week

Analysis Questions:

1. Is the stock trending?

• ✅ Yes, uptrend (+3% week)
• Leans toward: Hedge

2. How was it executed?

• If at ASK aggressively → Directional (bearish)
• If at MID/BID patiently → Hedge

3. What’s the expiration?

• 30 DTE = Medium term
• Could be either (need more data)

4. Strike placement?

• $180 puts = ~2.7% OTM
• Leans toward: Hedge (not ATM)

5. Any call activity?

• If also unusual call selling → Collar (hedge)
• If no call activity → Could be directional

6. IV behavior?

• If put IV spiking → Directional fear
• If put IV normal → Routine hedge

Likely conclusion: Given uptrend + OTM strikes + size, probably institutional hedge protecting long stock positions.

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Quick Decision Framework

Ask These 5 Questions:

1. What’s the stock’s recent trend?

• UOA opposite trend = likely hedge
• UOA with trend = likely directional

2. How aggressive was execution?

• ASK = directional
• MID/BID = hedge

3. What’s the time frame?

• <30 days = directional

• 60 days = hedge

4. Is there a catalyst coming?

• Yes (earnings, FDA) = directional
• No catalyst = hedge

5. Single-sided or balanced?

• Only calls/puts = directional
• Both = hedge/spread

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Highest Probability Directional Signals

Look for ALL of these together:

✅ Sweeps/blocks at ASK
✅ Short-dated (1-4 weeks)
✅ ATM or 1 strike OTM
✅ Single direction (calls OR puts, not both)
✅ Aligns with chart setup
✅ Near catalyst (earnings, news)
✅ Rising IV in that direction
✅ Premium > $1M+

When you see 6+ of these = HIGH conviction directional bet

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Highest Probability Hedging Signals

Look for these patterns:

✅ Stock in strong trend, opposite UOA appears
✅ Executed at MID or BID (patient)
✅ Long-dated (60+ days)
✅ Multiple strikes (spread out)
✅ Both calls AND puts active
✅ Round institutional lot sizes
✅ No immediate catalyst

When you see 5+ of these = Likely hedge, NOT directional

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Pro Tips

1. Check the Put/Call Ratio

• Extreme readings (>2.0 or <0.5) often signal hedging exhaustion
• Normal readings with spikes = directional

2. Look at Dark Pool Activity

• Large block stock purchases + call buying = bullish
• Large block stock purchases + put buying = hedging those shares

3. Follow-Through Matters

• Directional bets: Activity continues over multiple days
• Hedges: One-time positioning, then quiet

4. Use OpenInterest Changes

• OI increasing + volume = NEW positions (directional)
• OI flat + volume = Day trading/closing (less reliable)

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The Ultimate Test

After spotting UOA, wait 1-2 days and ask:

• Did the stock move in the direction of the options?
  • YES → Likely directional bet
  • NO → Likely hedge or wrong bet
• Did similar activity continue?
  • YES → Directional campaign
  • NO → One-time hedge

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Bottom Line

Hedging = Insurance (hopes it expires worthless)

• Long-dated, OTM, opposite of trend, patient execution

Directional = Speculation (wants to profit)

• Short-dated, ATM, aggressive execution, aligns with setup

The key: Hedging activity is actually contrarian indicator (bullish position needs bearish hedge). Directional activity is a confirmation signal (betting with conviction).