Articles on: Getting Started

How to Use SweepCast & What is Sentiment?

You may ask yourself the following questions when starting to use the platform...
How can a CALL have bearish sentiment?
How can a PUT have a bullish sentiment?

Well, it depends on what price point the CALL/PUT was traded. Here are the scenarios that can take place below.

Possible Scenarios and Sentiment

If a Sweep on a Call is BEARISH, this means the Call was traded at the BID

We are traders must look at why this could be the case.

It could be that someone actually wrote the calls and hit the market at the bid.

It could be that the price of the stock was increasing too fast that the order was setup at the bid and then the price finally got filled, for this you would want to look for SAME STRIKE/SAME EXPIRATION and see if the price of these options was increasing for other unusual flow. In this case it is not bearish but because of the fill, it is showing as bearish.

If a Sweep on a Call is BULLISH, this means the Call was traded at the ASK. The buyer was aggressive in getting filled and paid whatever price they could get filled at.

This usually has only one outcome, that the buyer was aggressive and wanted to get in at any price. Multiple sweeps at the same exact strike price where the price of the option is going up is very bullish, as they continue to purchase more options while the price is going up. You want to look for this because if you think about it in your own trading, why would you continue to pay for an option at the ask if the price was going up higher and higher... you must be very bullish about it.

If trade has Neutral Sentiment the trade was made at the mid (or middle of the bid and ask price)

Updated on: 30/04/2022