Dark Pool

How Draconic reads it

Dark pool trades don't appear on the standard exchange tape until after execution, which means large institutional positions can be built without the market seeing them directly. However, institutions typically hedge dark pool equity positions with options on public exchanges, creating a detectable signal in the options flow tape. A sudden spike in put buying for a stock shortly after a dark pool print often reflects protective hedging of a new long position. This indirect signal is imprecise but adds a layer of context when reading unusual options activity alongside price action. Dark pool data is most relevant for US equities; Indian markets have a different structure, with block deals reported separately through exchange mechanisms.