Option Flow — Dealer Positioning Read

Reads the mechanical layer of price: the buying and selling that option dealers are obliged to do as spot moves, regardless of any view on the business. That obligation leaves a measurable footprint on the option chain, and the footprint says whether hedging flows will currently dampen moves or amplify them.

This is the smallest useful claim, and the skill refuses to make a bigger one:

Option flow tells you whether the market is sticky or slippery — never whether it goes up or down.

It pairs well with any technical read (e.g. bf-tech-analysis): technicals produce the entry zone, stop and target; option flow says whether this is a week when a breakout is likely to be absorbed, and whether the proposed stop sits inside the stock's own noise band. It also runs standalone with just a ticker.

Disclaimer: Research and educational output only. Not financial advice. Dealer positioning is estimated from an assumption, never observed.

Vocabulary (defined inline — this skill is self-contained at runtime)

Dealer: the market maker on the other side of retail and institutional option trades. Does not want directional exposure; hedges with the underlying stock continuously. Avoid: whale, smart money, institution