- Symbol: AAPL
- Sentiment: BULLISH
- Option Type: Stock Options Cross
- Trade Type: Call
- Expiration Date: 2021-01-15
- Strike Price: $140
- Stock price: $115
- Volume: 82,797
- Open Interest: 46,859
- Notes: new position since volume for the day is double that of open interest
Does the side of the trade matter?
Yes, absolutely. As a market maker you are looking to collect the spread, and as such you are looking to buy on the bid and sell on the ask. Usually these market makers have placed their trades and are waiting for someone to bite.
A trade that happens on the ask or above is considered initiated by the buyer (market maker is happy to be selling at the ask to collect their spread). A trade that happens on the bid or below is considered initiated by the seller (again the market maker is happy to wait and buy on the bid to later sell higher to collect the spread).
How can you tell which side the trade happened on? Optionsonar makes it dead simple to filter out options that were bought or sold. Just look under the notes section to see if the option was bought or sold.