How To Best Identify Movers?
Here is the meat of it, you must think like a trader and understand what is happening based on the price action.
For stocks that may make a move up you would want to look for the following, (there might be other things but this is our opinion, you can do your own research and find other ways).
Same Strike / Same Expiration, Multiple Sweeps with the _price of the option moving up_.
Here is an example of CHWY, the buyer came in to purchase $95 12/18/20 @ $1.36 contract at 9:55AM then again 20 minutes later, they came in and bought the same exact strike, expiration @ $1.96 a contract. You want to look for these repeat buyers because they are extremely bullish on a stock, the same would go on the put side.
Adding more examples soon!
For stocks that may make a move up you would want to look for the following, (there might be other things but this is our opinion, you can do your own research and find other ways).
Same Strike / Same Expiration, Multiple Sweeps with the _price of the option moving up_.
Here is an example of CHWY, the buyer came in to purchase $95 12/18/20 @ $1.36 contract at 9:55AM then again 20 minutes later, they came in and bought the same exact strike, expiration @ $1.96 a contract. You want to look for these repeat buyers because they are extremely bullish on a stock, the same would go on the put side.
Adding more examples soon!
Updated on: 06/11/2021