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I see Calls being marked as bearish and Puts being marked as bullish. Why is that?
Options Flow
A ‘call option’ is not necessarily bullish, nor is a ‘put option’ necessarily bearish.
For example:
- purchasing a call (buying to open) would be a bullish trade while writing a call (selling to open) would be a bearish trade
- similarly someone writing a put would have a bullish lean, while a trader buying a put would be bearish
The ‘bullish’ and ‘bearish’ logic is as follows:
- a CALL at the ASK = bullish
- a CALL at the BID = bearish
- a PUT at the ASK = bearish
- a PUT at the bid = bullish
Keep in mind that this assumes that the trades are being opened, and also assume that a trade taking place at the ask was bought and a trade taking place at the bid was sold.