Some specific Flow lessons so far:
- Pay attention to size of trade vs option chain activity. A $250k option trade on NVDA is nowhere near as important as a $150k trade on a boring/low volume chain.
- It's a lot easier to sleep at night if you can come up with a reason to buy based on the Flow beyond just 'there was lots of volume' -- try to attach it to an upcoming event (earnings, announcement, FDA approval, etc). If not, you'll be smacked around by price action and shaken out easily.
- Single Leg has proven to be an important filter for me - because it (mostly) filters out trades that are hedge/multi-leg. You can get thrown off by a large new position taken, if you missed the opposing position that covers them in a tight range.
- If you're looking for bullish trades, be sure to set the filter of Bought - this will show you bullish calls only. Ones done at the bid aren't really bullish. Same logic for bearish trades.
- Don't boredom trade. Wait for the the perfect trade to come to you that meets all the criteria you like to trade. This casino is open 5 days a week, be patient.
- 0DTE's have so much volume, if you're not trading gamma squeezes, avoid the noise.
- Flow is a river of gold once you learn how to pan for it
