How to Identify Hedge Fund & Institutional Trades Using Unusual Options Flow

Spotting hedge fund and institutional activity in the options market can feel like trying to find a needle in a haystack, unless you know what to look for. With the Bullflow scanner, we make these trades easier to identify so you can take advantage of them before the rest of the market catches on.

Let’s walk through a recent example:

9/12/25 Unusual Options Activity: $7.44M Call Options on Teradyne ($TER)

A hedge fund just dropped $7.44M on Teradyne ($TER) call options, and this wasn’t your typical short-term scalp.

Here’s why this matters:

• Contract type: Long-dated December 2027 calls.
• Conviction: That much time on a contract shows patience and belief in the stock’s long-term upside.
• Stock context: $TER is trading near $110 with massive support around $102.
• Strategy: Institutions are preparing for short-term volatility but positioning for the long-term.

This trade isn’t about scalping quick profits, it’s about building a strategic position that could pay off over years.

How to Spot Hedge Fund Activity on Bullflow

So how can you identify trades like this yourself? Here’s what to watch for inside Bullflow’s options scanner:

• Unusual Size: Multi-million dollar premium trades stand out compared to typical retail flow.
• Long-Dated Contracts: Institutions often buy LEAPS (long-term options) to ride trends beyond short-term noise.
• At-the-Money Strikes: Close-to-the-money strikes as well as deep in the money strikes indicate they are likely a hedge fund or institution.
• Context Matters: $TER gets $342.44K in total unusual options premium per day on average, making $7.44M in premium going into 1 specific contract even more significant.

Why These Trades Matter

When hedge funds and institutions commit large premiums, it signals extensive due diligence and a strong thesis behind the trade. That becomes especially obvious when you see 21 times the daily average unusual options premium enter a position in under a minute. This type of activity signals conviction and scale that retail traders simply don’t move on their own.

The value of tracking unusual options flow in real-time is that it allows us to spot these rare, high premium trades exactly when they occur. By following where hedge funds and institutions are placing their confidence, traders can gain insight into potential market moves backed by significant capital and research.

Watch the Breakdown

We put together a quick breakdown of this $TER unusual options activity on YouTube:

🎥 Watch on YouTube

Final Takeaway

The $7.44M Teradyne trade is a textbook example of hedge fund or institutional positioning. By using Bullflow, you can spot these signals in real time and understand where smart money is moving.

Want to start tracking hedge fund trades yourself? Join Bullflow for a free trial and never miss the big money moves again.