Options Flow

How Draconic reads it

Options flow is the record of commitment: money that actually traded, not orders sitting on the book. The signal in flow lives in patterns rather than individual prints: sweep orders executed with urgency, block trades printed with institutional size, repeat buying at the same strike accumulated over hours, and volume spikes that dwarf existing open interest at a level. Most flow is noise: hedging, rolling, and routine position management. The institutional signal is a fraction of the total tape but is systematically distinguishable by size, urgency, and positioning context. Flow reveals where smart money is building exposure before price reflects that positioning, making it a leading rather than lagging data source.