im sure this has been touched on before but the real edge with order flow is having situational awareness on an institutional level to be able to say with a measure of confidence that X is from someone closing a position, Y is someone hedging, Z is just the short leg of a spread, etc etc.
like someone sold $6m USD worth of SPY 350 calls on friday and a lot of retail dudes were like wow omg how dare and then the cats who work at desks were like a) thats not a big number and b) you have no idea if this is someone closing a leap or what.
but yeah that kinda insight is why i took a step back from options / stonkage and just went balls deep into alg trading microstructure imbalances in /nq.
like someone sold $6m USD worth of SPY 350 calls on friday and a lot of retail dudes were like wow omg how dare and then the cats who work at desks were like a) thats not a big number and b) you have no idea if this is someone closing a leap or what.
but yeah that kinda insight is why i took a step back from options / stonkage and just went balls deep into alg trading microstructure imbalances in /nq.
Comment