Spotting Smart Money Moves with Unusual Options Activity

We often hear from Tigers who say:
“I want to see unusual options activity. I want to know what the smart money is doing. Is there anything I can refer to?”

Good news — Unusual Options Activity is now available.

1. What counts as unusual options activity?

Unusual options activity usually refers to a particularly large options trade, where the single-trade volume and notional value are significantly higher than usual.

In simple terms, it suggests that someone may be placing a sizeable bet on a particular option contract.

This type of activity may be more meaningful when it appears ahead of key market events, such as earnings releases, company meetings, or clinical trial results for pharmaceutical and biotech companies.

2. How can investors analyse and use it?

Let’s take META’s options activity on 28 January as an example.

Looking at the trades, we noticed that many of the large options orders were bullish on META’s future price movement. In particular, three call options stood out. They were close to expiry, had trading values much higher than usual, and were all out-of-the-money call options.

Given that META was scheduled to release its earnings after market close, this suggested that some traders were strongly bullish on META’s post-earnings performance.

If, after doing our own chart analysis and research, we agreed with this view, we could consider setting up a trade accordingly.

The next day, META opened sharply higher and jumped by 10%, which supported the signal suggested by the large options activity on the previous day. Investors who had positioned themselves in advance could have seen meaningful gains.

That said, markets do not always move as expected.

It is important to remember that unusual options activity is only a reference point. It tells us that someone is placing a large trade, but no one can know for sure where the stock price will go next.

For example, even if a company reports strong earnings, management may still give cautious guidance during the earnings call, which could affect the stock price negatively. Therefore, investors should always combine unusual options activity with their own analysis, risk management, and trading plan.

3. Learn more about options trading

If options trading still feels confusing, or you would like to build a more structured understanding of options strategies and market opportunities, you can join our Options Bootcamp Group.

In the group, you can:

• Get ongoing guidance and Q&A support to better understand unusual options activity and other options strategies

• Attend regular online and offline sessions covering options basics, market analysis, and advanced trading strategies

• Discuss, review, and learn together with other options investors to broaden your trading perspective

Through continuous learning and exchange, you can gradually build an options trading framework and approach that suits your own investment style.