How Institutional Investors Use Intrinio’s Unusual Options Activity to Detect Market Trends

When a single trader scoops up a massive block of out-of-the-money calls with an expiration two weeks out, it might look like noise—until it doesn't. Behind many of the market's sharpest moves are footprints left in the options market, and institutional investors know how to follow them.

Unusual options activity (UOA) isn’t some secret trading signal only hedge funds have access to. With the right tools, any team can integrate this data into their investment process. At Intrinio, we make it accessible, clean, and actionable—so institutional investors can move with confidence, not guesswork.

The signals hidden in options markets

Options are where speculation, hedging, and big money intersect. While equity trading tells part of the story, options activity can hint at what traders expect to happen next. Volume spikes, aggressive positioning, and unusual flows often show up in options before they do in stock prices.

That's why UOA has become a go-to signal for firms seeking early clues about sentiment, volatility, and potential catalysts. But you have to know what you’re looking for—and you need data you can trust.

Why institutions watch options activity

To gauge sentiment shifts before they hit the news

When a trader buys a chunk of near-term calls well above the current price, it's a directional bet. Multiply that across the market, and you have a sentiment trend.

To identify potential catalysts

A surge in put activity ahead of earnings, FDA decisions, or regulatory announcements? Institutions pay attention. UOA often hints at events retail investors don’t yet see.

To monitor smart money behavior

Large, concentrated options trades are rarely accidents. Institutions track these transactions to see where capital is flowing—and whether they should follow or fade.

To detect volatility before it spikes

Options pricing reflects implied volatility. Sharp changes in activity can predict swings in stock price, even if volume is quiet on the equity side.

What constitutes “unusual” options activity

Volume or open interest far above average

If a contract usually sees 100 trades a day and suddenly spikes to 5,000—that’s unusual.

Large block trades outside the bid/ask spread

Institutions look for trades placed at a premium, suggesting urgency or conviction.

Skewed call/put ratios

An imbalance in bullish vs. bearish contracts, especially if sudden, can signal a directional shift.

Near-term expirations with aggressive strikes

Short-dated options with OTM strikes suggest traders are positioning for fast, sharp moves.

Repeated large trades in the same name

One big trade could be noise. Several, spaced over days or weeks? That’s a potential trend.

How UOA is used to detect market trends

Sector rotation signals

Institutions monitor UOA across sectors to see where capital might be rotating next. A spike in energy puts or tech calls can be the first clue.

Earnings season expectations

Unusual call buying ahead of an earnings report can imply bullish expectations. UOA gives traders a read on market consensus before guidance drops.

Pre-merger or acquisition rumblings

It’s not always legal inside info—sometimes it’s just sharp analysis. Either way, unusual activity in small-cap names can precede major corporate events.

Risk-off or risk-on shifts

When put buying picks up across indexes or high-beta stocks, institutional desks flag it as risk-off behavior. The inverse can signal bullish appetite.

Confirmation of technical setups

Some firms combine chart patterns with UOA. If a breakout setup coincides with heavy call volume, it adds conviction to the thesis.

Navigate unusual options activity with Intrinio

Most firms want to use UOA. Few want to deal with OPRA fees, data noise, or latency issues. That’s where we come in.

Intrinio's Unusual Options Activity Feed offers:

• Real-time-like updates (without OPRA license requirements)
• Filtering by volume, strike, expiration, and more
• Greeks, volatility, and sentiment indicators
• Clean, normalized data delivered via API

You can plug our feed into internal dashboards, quant models, or third-party tools without months of engineering. Whether you’re scanning the market or tracking a watchlist, Intrinio gives you a clearer view of what's moving under the surface.

Want to start spotting signals before they hit your Bloomberg alerts? Let’s talk.

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