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The image below is a screenshot of NFLX option flow on 04.04.2022. Price is currently up +5.55% three hours into the trading day.

Here’s a quick, general summary:

Buying calls may be a trader opening a trade betting on price to go up.

Selling calls may be a trader getting stopped out or taking profits.

Buying puts may be a trader opening a trade betting on price to go down or hedging their long positions.

Selling puts may be a trader getting stopped out or taking profits.

When a trader starts a new trade position they pay the Ask price. When a trader closes a position, they pay the Bid price. Generally, here’s how we know if a Put or Call is being bought or sold:

Therefore, a Call at the ask is a trader opening a bullish trade. The larger the value of the trade, the bigger the whale is. A put at the bid is a trader closing a bearish trade meaning they either got stopped out or are taking profits. Regardless this is bullish.

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