Options Flow

Options flow is the real-time tracking of how many options contracts (agreements giving the right to buy or sell a stock at a set price) are being bought and sold, and at what prices. You'll see it discussed on trading forums and financial sites because large options trades can signal what smart money thinks a stock will do next—if institutions are quietly buying call options (bets the price goes up), it might hint at confidence in the company. It matters because options amplify gains and losses, so unusual activity can precede big stock moves. For example, if someone notices a surge of call options being purchased on TechCorp before an earnings announcement, it suggests traders expect good news.