Learn · options market structure
What does bought at the ask mean in options flow?
Bought at the ask means the option traded at the seller's asking price, which usually means the buyer was in a hurry and crossed the spread. Flow scanners treat it as an aggressive, buyer-initiated trade. Sold at the bid is the mirror image: a seller accepting the buyer's price.
Above the ask and below the bid
A print above the ask, or below the bid, usually means the order swept several exchanges or the quote moved during the trade. Below the bid is still a seller accepting less than the best bid, so it is seller-initiated.
Why the midpoint is neutral
Trades near the midpoint are often negotiated or part of a multi-leg order, so neither side clearly initiated them. Good flow tools leave them out of directional totals.
Limits
Quotes move fast, and the bid and ask at the exact moment of the print can be stale by a few milliseconds, so side labels are estimates, most reliable on large, liquid contracts.
Related
- What is net premium in options flow?
- What is unusual options activity and how should I read it?
- What does it mean when traders sell puts on a down day?
Education and market data, not investment advice. GammaPulse does not publish a track record or performance claims.