Options Flow by Market Sector
First of all, Why is sector momentum important?
Understanding where money is moving into which of the 11 major market sectors is important for day traders, swing traders and long-term investors. When tech sells off, utilities and energy stocks could be rising. When financial services rallies, industrials could be fading. By catching momentum shifts early, investors can be quick to catch the trend. If your money moves to the sectors with the bullish momentum, it will perform far better then just keeping it in the SPY500. Think about it, Tech rallies 20% while SPY500 rallies 12%, Financials rally 15% while SPY500 rallies 7%, these moves can protect you in bearish conditions too. SPY500 can fall 8% but Energy stocks could rally 10%. Moving your money to the sector with the most momentum has powerful impact on your account.
How do you track sector momentum?
TradeUI created a real time solution. By taking the option flow data from TradeUI, the team was able to create an option flow by sector chart to show our users which sectors are gaining or losing momentum. These charts show the Call/Put premiums, as well as the total Call/Put contracts. The best part is that users can filter the flow by “Days Till Expiration” and adjust the “Period” at which the data is collected. By reading the “Option Flow/Sector” with a “Days Till Expiry” of 21-30 could show you what sectors investors and traders are starting to move their money into.
Traders need an edge to compete in this game. Our goal at TradeUI is to provide effective and efficient tools traders can use to take their strategies to the next level. The Option Flow/Sector table has the power to give you sector direction and help you stay ahead of the game.
If you want to learn more, use the link below that will take you to TradeUI and start the Two-Week Trail to see if the service is a good fit for you!
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