Breaking Down and Using the Unusual Whales Interval Flow — Transcript

Full transcript

1. 0:06hey everyone in this video we're going
2. 0:08to break down how to spot and track a
3. 0:11trade using the interval flow tool we'll
4. 0:14also cover the interval flow filters
5. 0:16that were used in finding this trade and
6. 0:19how you can use the other Pages for that
7. 0:21contract to get more information about a
8. 0:24set of
9. 0:26transactions now the interval flow is
10. 0:28just another iteration of the flow feed
11. 0:30only transactions are aggregated into a
12. 0:33set time interval you can adjust that
13. 0:36time interval between 5 10 and 30
14. 0:41minutes this means that any contracts
15. 0:44that appear in this interval flow feed
16. 0:47are those who have enough transactions
17. 0:49within the selected time interval to
18. 0:51meet the criteria that we set in these
19. 0:54filters so let's start off right now by
20. 0:57going through and building a filter one
21. 1:00that I personally use and the one that
22. 1:01was used to track the trade that we'll
23. 1:03be talking about in this
24. 1:05video for this filter I'm primarily
25. 1:07looking for ask side transactions with a
26. 1:10high chance of opening trades where the
27. 1:12majority of the volume coming in on that
28. 1:15contract occurs within a short time
29. 1:17frame to achieve this I'll first set my
30. 1:21time interval to 5 minutes like I said I
31. 1:24want it to be within a short time frame
32. 1:27for the equity type I'm going to turn
33. 1:29off off ETFs and indices to weed out the
34. 1:34noise and hedging mechanisms that can
35. 1:36sometimes be seen in spy QQQ
36. 1:39Etc I also want to see both calls and
37. 1:43puts for this filter it's not for an
38. 1:45overall directional bias I want to see
39. 1:48individual names and contracts here both
40. 1:50calls and puts I also want to see all
41. 1:54expiration dates and all sectors for
42. 1:57this filter and so I'll leave calls and
43. 1:59puts on an expiry ins sectors blank now
44. 2:03down here we get to the spicy filters
45. 2:05for the interval activity these are the
46. 2:08criteria that Flo must meet within the
47. 2:10selected time interval in order to
48. 2:12appear in this feed now I mentioned I
49. 2:16wanted to see ask side activity where a
50. 2:18large portion of the volume occurs
51. 2:20within this time minute interval so the
52. 2:23percent total volume I'm going to put a
53. 2:2765 here to represent 65% of that
54. 2:31contracts volume occurring within this 5
55. 2:34minute interval for volume I don't want
56. 2:37it to be too low because then I'll get
57. 2:39too much data but I also don't want it
58. 2:42to be too high because I might miss some
59. 2:44lower volume contracts or lower volume
60. 2:47stocks so I'm going to go ahead and set
61. 2:49this to a modest 500 contracts we'll
62. 2:52still see some noise in here but it
63. 2:54would also help me hit on some lower
64. 2:55volume names as well for the volume to
65. 2:58open interest ratio we always discuss
66. 3:01that to be absolutely certain a trade is
67. 3:03a new opening position that the size of
68. 3:05the trade must be greater than the open
69. 3:07interest but other contexts can help you
70. 3:09dictate new positions as well so in this
71. 3:12case I don't want the volume to be below
72. 3:15open interest but it doesn't necessarily
73. 3:17need to be two times the open interest
74. 3:19for me to be interested in the flow I'll
75. 3:21set this to
76. 3:231.05 or more meaning there is higher
77. 3:26volume than open interest but it can
78. 3:27still be kind of close now like I'd said
79. 3:30I want mostly ask side transactions
80. 3:33possibly to open in this interval feed
81. 3:35so I'm going to set the ask perent
82. 3:39to7 this means that 70% of that
83. 3:42contract's volume will have transacted
84. 3:43on the ask side of the bid ask spread so
85. 3:47naturally I'll also leave that bid
86. 3:49percent and skew percent zero because
87. 3:52I'm looking for ask side transactions
88. 3:54for this filter now also within this
89. 3:56filter I'm not really looking for
90. 3:58multi-leg transaction but I don't want
91. 4:00to write off any contracts just because
92. 4:03there was some volume involved in
93. 4:05multi-leg transactions I'll keep this
94. 4:07range set from 0 to 25% of the volume
95. 4:12containing multi-leg trades for premium
96. 4:15I don't want to just catch a bunch of
97. 4:17one-cent contracts with no other context
98. 4:19but I don't want to miss smaller names
99. 4:22either I'll set this to at least 10,000
100. 4:25in premium transacted within that
101. 4:275minute time interval now below we have
102. 4:30these quick filter sliders and I'm going
103. 4:32to take us back to that topic of volume
104. 4:34versus open interest I mentioned I don't
105. 4:36need a crazy ratio for this filter but I
106. 4:39do want the volume transacted within
107. 4:41this 5 minute interval to be higher than
108. 4:43open interest overall so I'll set this
109. 4:46interval volume greater than open
110. 4:48interest to on obviously that also means
111. 4:51I want the total volume on the day to
112. 4:53also be greater than open interest so
113. 4:55that one's also on and then I'm going to
114. 4:57turn the exclude in the money slider on
115. 5:00as well here to exclude in the money
116. 5:03contracts that may not give a
117. 5:04directional bias due to hedging or
118. 5:07Arbitrage I've left the rest of these
119. 5:09filters
120. 5:12blank now we're looking at this filter
121. 5:15as it appeared on Friday April 26th and
122. 5:19there were a few contracts that caught
123. 5:21my eye but the one we're going to look
124. 5:23at here is this Tesla
125. 5:25$210 call for June 21st 2024 down here
126. 5:31while the volume isn't significantly
127. 5:33higher than the open interest the volume
128. 5:36that transacted just within that 5
129. 5:38minute time frame was higher than the
130. 5:40outstanding contracts
131. 5:4311,698 volume versus just
132. 5:469,292 open
133. 5:48interest not only that I kind of had the
134. 5:51context that Tesla has been taking a bit
135. 5:53of a beating lately and many were
136. 5:55betting on a rebound in the stock NOW
137. 5:58clicking into the the chain summary of
138. 6:00the contract for April 26th we can see
139. 6:04fairly clearly that nearly all of the
140. 6:06volume transacted came within that 5
141. 6:09minute time frame and almost all of it
142. 6:12transacted at the ask side so let's go
143. 6:15ahead and click on that volume candle
144. 6:17for the 5 minute interval between 12:45
145. 6:20and 12:50 p.m. central doing so
146. 6:23automatically takes you to the flow feed
147. 6:25with the filter set to that exact time
148. 6:28frame in the feed here we can clearly
149. 6:31see the repeated ask side orders on the
150. 6:33contract filling at 233 to 234 per
151. 6:36contract the transactions also triggered
152. 6:39a repeated hits alert which was followed
153. 6:43by two large
154. 6:45transactions that's interesting so we
155. 6:48can save these transactions to look at
156. 6:50later to our my trades by clicking the
157. 6:52heart next to them now although none of
158. 6:54these trades had a size greater than
159. 6:56open interest the total volume
160. 6:58transacted in that time interval quickly
161. 7:01overtook the outstanding open interest
162. 7:04we can hypothesize that this is a new
163. 7:06position due to this nature of the fills
164. 7:09now it's not a guarantee that all were
165. 7:11opening trades but it does seem much
166. 7:13more likely than position closures and
167. 7:16to kind of help us deduce that looking
168. 7:18back at the Historical flow for this
169. 7:21contract it looks quite a bit like this
170. 7:24position's been building up to varying
171. 7:25degrees both at the bid and at the ask
172. 7:28over quite a bit of time now so it seems
173. 7:31a little less likely that that volume
174. 7:34that was transacting was positional
175. 7:36closures due to the nature of how that
176. 7:38open interest came to be we didn't see
177. 7:41two massive orders of 3,00 2700 coming
178. 7:45in so it stands to reason that we're
179. 7:48looking at something new
180. 7:53here now on April 29th Tesla has indeed
181. 7:57rallied we can pop this cont contract
182. 7:59open in the contract look up and see the
183. 8:03results of the
184. 8:0511,698 volume that transacted on Friday
185. 8:09the 25th
186. 8:118534 carried over into open interest
187. 8:14that's a hard conversation of new
188. 8:16positions opening in the case of this
189. 8:18contract however waiting for the
190. 8:20confirmation would have missed the move
191. 8:22which is why that context I talked about
192. 8:24earlier is really useful for higher
193. 8:27volume tickers like Tesla
194. 8:30on the morning of April 29th Tesla had
195. 8:32already gapped up from around
196. 8:35$168 per share to $190 plus dollar per
197. 8:40share over the course of the morning
198. 8:42Tesla continued its uptrend and topped
199. 8:45out on the day at around
200. 8:48$198.2 per share at that high of day
201. 8:52this position had gone from their
202. 8:54original entry of
203. 8:55$2.33 per contract to a high of $12
204. 9:00$185 per contract a
205. 9:0341%
206. 9:05gain now looking back at the contract
207. 9:08Explorer we can see that there has
208. 9:09indeed been some volume transacted today
209. 9:12split about 50/50 between the bid and
210. 9:14the ask on those fills so it's hard to
211. 9:18tell right now if any of that position
212. 9:20is taking profit how much of it is
213. 9:22staying open we'll only know that once
214. 9:25we see that open interest update again
215. 9:27on the next trading day the that about
216. 9:29wraps it up for this one on interval
217. 9:31flow you guys I hope this helped you
218. 9:33understand a little bit better how you
219. 9:35can utilize interval flow and the
220. 9:37filters to help you track trades and
221. 9:40understand the context between the
222. 9:42volume that's transacting and the open
223. 9:44interest that exists and help you
224. 9:47understand more about the context about
225. 9:49order fills and kind of following along
226. 9:52with how those trades pan out over time
227. 9:54using the contract
228. 9:56Explorer be on the lookout for the next
229. 9:58one guys thanks for tuning in