Options Flow Scanner

The order book shows pending orders at various price levels that haven't been executed yet - it's a snapshot of current demand and supply. Options flow refers to actual executed trades - transactions that have been completed. Flow analysis tracks what has happened (actual buying and selling), while order book analysis shows what might happen (pending intentions). Flow is typically more reliable for analysis because it represents committed capital rather than potentially cancelable orders.

The UK has no NSE-style daily FII/DII participant flow, so institutional intent is inferred from several sources: ICE Futures Europe open interest and block trades; FCA short-selling disclosures (individual 0.5%+ until 13 July 2026, then a daily anonymised Aggregate Net Short Position per company); and DTR 5 major-holdings notifications for large equity stakes. These reveal positioning and short interest rather than a full long/short participant breakdown, and should be used as one input among many.

ICE Futures Europe publishes settlement and open-interest data end of day, with free data typically delayed. For live, intraday option data you need a broker terminal or vendor feed (Interactive Brokers, IG, Saxo, Bloomberg, LSEG Workspace). The LSE cash session runs 8:00 AM to 4:30 PM London time. Free/delayed data suits swing trading and end-of-day analysis; intraday scalping needs a paid live feed.

Options flow analysis works for both index and stock options, but with some differences. Index options (FTSE 100, FTSE 250) have much higher liquidity, making flow signals more reliable and easier to interpret. Stock options have lower volumes, wider spreads, and flow can be more easily moved by single large players. For stock options, focus on unusual volume alerts during earnings season or around company-specific events, and use higher thresholds for significance.

Start with ICE Futures Europe data (daily OI, volume and settlement for FTSE 100 options), the FCA short-selling disclosures (aggregate net short positions per company), and RNS/Investegate for corporate events. Add VFTSE (the FTSE 100 Volatility Index) for volatility context. Together these cover the essentials for basic flow analysis without a paid subscription, though live intraday data requires a broker feed.

Institutional block trades typically show: (1) Single large print with specific contract size (500+), (2) Execution at a single price without order book visibility, (3) Timing during institutional trading hours (10 AM - 12 PM, 2 PM - 3 PM), (4) Often at technically significant strikes (round numbers, S/R levels), (5) Followed by OI increase indicating new position. Retail orders broken up appear as multiple smaller trades at varying prices over a longer period. Also, true blocks often have premium values exceeding £25-50 .

Expiry days have unique dynamics that distort normal flow signals: (1) Gamma explodes for ATM options, making small OI changes significant, (2) Premium decay accelerates, making option prices move faster, (3) Position unwinding and rollover dominate, creating high volume without new directional conviction, (4) 'Pinning' effects can keep price near high-OI strikes, (5) Last-hour flow often represents scrambling rather than conviction. Treat expiry day signals with extra skepticism and focus on post-expiry positioning in next series.

Net delta flow measures the aggregate directional exposure from options activity. Strong positive delta flow (call buying, put selling dominating) indicates bullish positioning that often precedes upward price movement. This works because: (1) Large players expressing directional views through options may have information, (2) Dealer hedging amplifies moves - heavy call buying forces dealers to buy underlying, (3) Delta flow aggregates thousands of individual decisions into a single directional signal. Combine with technical levels for timing.

When both PCR (Put-Call Ratio) and market price are rising simultaneously, it typically indicates: (1) Put writing is increasing - traders selling puts believe the market will hold current levels or rise, (2) Hedging activity - long holders adding protection without being bearish, (3) Healthy skepticism - not everyone is bullishly complacent, which is actually positive for rally continuation. This divergence (rising PCR in rising market) is often seen in sustainable uptrends where participants are cautiously optimistic rather than euphoric.

During high-volatility periods: (1) Increase threshold for 'unusual' volume - baseline volume is already elevated, (2) Focus more on put-call ratio and premium values than absolute volume, (3) Give more weight to OI changes than volume alone, (4) Be cautious of hedging flow distorting signals - high VFTSE attracts protective put buying, (5) Look for capitulation signals (extreme readings) that mark turning points, (6) Reduce position sizes regardless of signal strength, (7) Use wider stop-losses as options can gap significantly.

Dealer gamma exposure creates asymmetric reliability: (1) Above gamma flip level (positive GEX zone), dealers are long gamma and provide liquidity, dampening moves - flow signals may lead to smaller moves as dealer hedging provides counter-force, (2) Below gamma flip level (negative GEX zone), dealers are short gamma and their hedging amplifies moves - flow signals in this zone can lead to larger moves, (3) At high GEX strikes, large OI creates 'pinning' that can override normal flow signals, especially near expiry. Always contextualize flow signals with current GEX environment for accurate move expectation.

To identify hedging vs speculation: (1) Check institutional cash market data - if institutions are net buyers in cash but options show put buying, likely hedging, (2) Analyze strike selection - hedging typically uses OTM options for cost efficiency; speculation often near ATM, (3) Look for collar patterns - simultaneous put buying and call selling indicates hedged position, (4) Time correlation - hedging often occurs during uncertainty (pre-event) or after significant gains, (5) Size proportionality - hedging size relates to underlying position size, (6) Premium sensitivity - hedgers accept higher premium for protection; speculators are more price-sensitive.

Limitations: (1) Publication lag - the FCA aggregate short position is published at noon (T+2), so it is not usable for same-day intraday trading; (2) Aggregation - aggregate figures hide intraday and intra-firm reversals; (3) Net/aggregate only - they do not reveal gross activity or conviction; (4) Short interest is only one side - it captures bearish positioning, not full long/short flow; (5) Not all positioning is directional - some is hedging or arbitrage; (6) Imperfect predictive record, especially at turning points. Use positioning data for bias, not precise timing.

Flow signal weighting varies by segment: (1) Large-cap index options (FTSE 100, FTSE 250) - highest reliability, deep liquidity, broad institutional participation; use standard thresholds, (2) Large-cap stock options (Shell, HSBC) - good reliability, reasonable liquidity; increase volume threshold by 50%, (3) Mid-cap stock options - lower reliability, thinner liquidity, easier to manipulate; double volume threshold, focus only on block trades, (4) Small-cap options (if available) - generally avoid for flow analysis, single player can distort signals. Also consider that smaller stocks have more asymmetric information, making flow potentially more valuable but also more risky.

Multi-timeframe flow framework: (1) Weekly level - analyze weekly expiry OI build-up pattern for structural positioning, (2) Daily level - track EOD OI changes and institutional-positioning data for directional bias, (3) Intraday level - monitor real-time flow for entry timing within daily bias, (4) Alignment requirement - only trade when all three timeframes align (e.g., weekly OI suggests support, daily institutional bullish, intraday shows call buying at support), (5) Conflict resolution - when timeframes conflict, defer to longer timeframe for direction, shorter for timing, (6) Confirmation sequencing - wait for shorter timeframe to confirm longer timeframe signal before entry. This reduces false signals and improves probability by requiring multiple independent confirmations.