Do you like to trade using unusual options activity? Then our Cheddar Flow review is for you. Cheddar Flow is a platform that uses real-time data to scan for calls and puts. In fact, this is data that institutional investors use. Now it’s at your fingertips!
Table of Contents
Cheddar Flow Review Introduction
Cheddar Flow is a trading site and platform that can be used to follow unusual options activity on the stock market. It’s used to gather real-time data on large call or put orders that are placed against a specific stock. You might be wondering how this would help you as a normal trader? Well, it certainly provides an insight into how institutions are trading options on a stock. It also gives an excellent look at what the current market sentiment is for that company.
Cheddar Flow is a subscription-based site. They provide exclusive data to their users. It’s one of just a few unusual options activity platforms that have popped up for retail traders in the past few years. Before these sites were established, this data was almost exclusively for institutional investors. As trading has gone more mainstream and online, it’s been easier for retail traders to gain access to previously undisclosed information! Let’s continue with our Cheddar Flow review.
Unusual Options Activity
If you’ve been hanging out on FinTwit or Reddit, or any other investing discussion group, you’ve probably heard mention of unusual options activity. While there isn’t a true textbook definition, it’s usually any block of options contracts that is larger than a ‘normal’ order. These are generally considered to be ‘whale’ orders. Which can range from hundreds to tens of thousands of contracts in a single order. As you can imagine, some of these orders can be valued in the millions of dollars.
Does unusual options activity tell us anything? While it’s never a guaranteed investing strategy, it has long been considered a good idea to follow the smart money. A lot of these institutional investment firms trade with algorithms and technical analysis.
These trades are executed without emotion. As a result, the moves create market sentiment for a particular stock. Remember that options orders generally don’t affect the price of the underlying stock. If you follow Cheddar Flow’s flow scanner, then you’ll be able to stay one step ahead of the markets! What else does our Cheddar Flow review say?
Like any sentiment tracking platform, the CheddarFlow Scanner is the heart and soul of the site. Once you log in to the CheddarFlow platform, you’ll immediately be taken to the scanner dashboard. One look at the CheddarFlow scanner tells you everything you need to know about the site! Across the top of the scanner you’ll see four headers; Flow Sentiment, Put to Call ratio, Call Flow and Put Flow.
The Flow Sentiment gives you an idea of the overall sentiment of the markets. If it’s bullish, you can likely bet that traders are buying more call orders. If it’s bearish, there’s likely a higher number of put orders being placed. The headers are color-coded, with easy-to-understand visuals no matter what your trading experience is.
The Put to Call ratio is important to keep track of. Especially when gauging the sentiment of the markets. Remember, not all puts are bearish, and not all calls are bullish. That is the one thing to keep in mind when tracking unusual options activity. The Put to Call ratio is a good way to generally track which way the markets may be moving. Don’t use it as your final decision on making a trade though!
Call Flow and Put Flow is self-explanatory, and just as the Put to Call ratio, do not blindly follow these flows. These two headers will provide a total number of Call and Put orders, as well as a visual graph. Again, a very simple and user-friendly layout to follow!
The Meat of the Scanner
Below these headers is the real meat of the scanner. The first thing you will notice is that the list of options activities is constantly updating in real-time. For ease of filtering you can sort by time, ticker symbol, spot, size, strike price, premium, volume, or order type. Talk about a fully customizable options flow dashboard!
The list is color-coded as well with call orders appearing in green and put orders appearing in red. If the order is a part of a sweeper order, which means a group of options orders of the same asset, then they will appear in yellow so it is easy to keep track of the separate orders. For a platform that provides some pretty complex information, Cheddar Flow’s flow scanner is easy to use with little training and instruction!
Since its inception, Cheddar Flow has really bulked up on its additional features. It is no longer just an options flow screener! The platform now has a fully interactive charting section, which allows users to use their own technical analysis when following order flows. Charting has been gaining popularity amongst retail investors, and can be an excellent tool in helping to predict future stock behavior!
Another feature that Cheddar Flow added is the Dark Pool levels. What are Dark Pool levels? The Dark Pool is a separate exchange outside of the normal markets where large block orders are placed. These orders would be large enough to affect the underlying stock price, so it would not be appropriate to have them placed on the regular exchanges. We are talking orders that are worth tens or hundreds of millions of dollars!
The Dark Pool has recently been making headlines as Reddit investors have complained about market manipulation. Specifically, large orders of meme stocks like AMC (NYSE: AMC) have been tracked through the Dark Pool. The issue with relying on Dark Pool data is that it only shows the orders, and not if they are bullish or bearish in sentiment.
Additionally, in Cheddar Flow you can look up the historical flow of orders, as well as customize your own watchlist where you can set notifications. CheddarFlow even offers an educational page where you can learn about topics like Dark Pool Flow, unusual options, and even technical analysis! Which is what we love about his Cheddar Flow review.
How Much Does Cheddar Flow Cost? (Pricing Review)
So, how much does an options flow tool like Cheddar Flow cost? Well, first off if you want to try the platform out Cheddar Flow offers a free seven-day trial where you cancel at any time! If after the seven days you want to sign up for the full subscription, you have a couple of different options. Cheddar Flow has three different subscription levels for new users: the Standard Plan, the Pro Annual Plan, and the Professional Plan.
The three levels range from $75.00 to $99.00 per month and offer some slightly different features. While most retail traders probably only need the Standard plan, some will probably like the upfront discount that the Pro Annual plan offers. It’s also not a very big jump to the Professional Plan which would provide all of the features Cheddar Flow has to offer!
On top of all of that, right now if you sign up during the month of November you get access to Cheddar Flow’s Black Friday sale! By simply entering the code BF21, you can receive up to 40% off CheddarFlow’s regular subscription prices! That sounds like a Cheddar Flow review winner to me.
Which Type of Trader Needs to use CheddarFlow?
Cheddar Flow can help any type of trader as long as they know how to use the information properly. If you are new to options trading, it might help to take some of the Cheddar Flow education courses. If you are looking to get into day trading or swing trading, then CheddarFlow will provide you with the minute by minute market sentiment that is so important for these types of trades. For long-term buy and hold investors, Cheddar Flow can provide a picture of where institutions believe a stock is heading in the future.
Is it essential for trading? The short answer is probably no. As we already mentioned, no trading tool should be used as an absolute decision maker on making a trade. Use Cheddar Flow alongside your research and technical analysis. While following smart money has always been thought of as a profitable endeavor, institutions can and do get trades wrong.
Cheddar Flow Stock Price and Symbol: Are They Publicly Traded?
Investors cannot purchase shares of Cheddar Flow because the company is privately held.
Cheddar Flow Review Final Thoughts
We hope you enjoyed this Cheddar Flow review. So is Cheddar Flow worth it for the everyday trader? Our sentiment is a resounding yes! Until a few years ago, this type of data was not even available to retail investors. If you are able to utilize Cheddar Flow’s information, it is not unreasonable to think you can make back the annual subscription cost in one well-executed trade!
Cheddar Flow is one of the easiest platforms we have ever used and has nearly zero learning curve for new users. One glance at the options scanner will tell you everything you need to know about how to use it! The additional features of charting, educational courses, and Dark Pool flow makes Cheddar Flow one of the most robust options scanners on the market, and an important tool in any trader’s arsenal!