Institution Option Trading Part-2.0

Institutional Order Flow – Market Impact
Option Flow as Signal: Large trades in options market may indicate upcoming moves in underlying assets.

Unusual Options Activity (UOA): Tracked by smart money traders to anticipate institutional moves.

Dark Pools: Institutions often use off-exchange mechanisms to avoid price impact.

Tools & Analytics Used by Institutions
Volatility Surface Analysis

Greeks Sensitivity Scans (Delta, Gamma, Vega, Theta)

Skew Charts & Term Structure

Trade Cost Analysis (TCA)

Liquidity Heatmaps

Algo Execution Strategies (TWAP, VWAP)