Learn · options market structure
What is net premium in options flow?
Net premium is bullish premium minus bearish premium across a set of options trades. Calls bought and puts sold count as bullish; puts bought and calls sold count as bearish. A large negative number means more money went to bearish trades, but it depends on correctly reading which side started each trade.
How each trade is classified
Each print's price is compared with the bid and ask at that moment. At or above the ask is treated as a buyer; at or below the bid as a seller; the midpoint stays neutral. Combining that with call or put gives the direction.
Where it misleads
Spreads (a bought put and a sold put printed together) show up as one bullish and one bearish leg and should be netted out. Closing trades look the same as opening trades. And a few huge index prints can swamp everything else, so look at which symbols drive the total.
How GammaPulse shows it
The Flow page reports net premium with the share of premium it could classify, flags spread legs and excludes them, and says 'Too little classified' instead of guessing when most prints sit at the midpoint.
Related
- What does it mean when traders sell puts on a down day?
- What does bought at the ask mean in options flow?
- What is unusual options activity and how should I read it?
Education and market data, not investment advice. GammaPulse does not publish a track record or performance claims.