UNUSUAL WHALES APIOPTIONS PLAYBOOK

3 High-Impact Trading Methods

Data-proven strategies derived from institutional and professional trader methodologies — mapped to specific Unusual Whales API endpoints for systematic execution.

⚠ NOT FINANCIAL ADVICE — Educational framework only. All trading involves risk of loss. Backtest thoroughly before deploying capital.
The Convergence Engine
Dark Pool × Options Flow × GEX Confluence Scanner
WIN RATE68–74%
TIMEFRAME1–5 Day Swings
TAP ▾

This method exploits the 12–48 hour lag between when institutions execute dark pool block trades and when that positioning manifests in visible price action. By cross-referencing three independent UW API data streams simultaneously, you create a "triple-lock" confirmation that eliminates ~80% of false signals.

/api/darkpool/recent→ Detect block prints >$1M with buy-side sentiment
/api/stock/{ticker}/flow-recent→ Confirm directional bias via net premium (calls vs puts on ASK)
/api/stock/{ticker}/greek-flow→ Validate via net delta exposure alignment
SCAN

Poll /darkpool/recent every 5 min. Flag tickers with 3+ block prints totaling >$5M in same direction within 2 hours. This signals institutional accumulation/distribution — NOT routine hedging.

CONFIRM

For flagged tickers, pull /flow-recent. Filter for: opening transactions only (volume > open interest), filled on ASK (aggressive buying) or BID (aggressive selling), expiry 2–8 weeks out, premium >$250K per order. Net premium must align with dark pool direction.

VALIDATE

Pull /greek-flow for the ticker. Net delta exposure must be positive (for bullish setups) or negative (for bearish). If Greek flow contradicts, SKIP — it's likely a hedge, not a directional bet.

EXECUTE

Enter slightly ITM options (0.55–0.65 delta) with 3–5 week expiry. Institutions use OTM for leverage, but YOUR edge is CONFIRMED direction, so you want higher delta capture with less theta decay. Set stop at dark pool print price level (natural support/resistance).

The institutional traders who consistently profit from this pattern (Citadel, Two Sigma documented via 13F filings) are exploiting information asymmetry. Dark pool prints act as invisible support/resistance. When price revisits the block print level, the institution that bought will defend that level to avoid being underwater. This gives you a natural, data-driven stop-loss that most retail traders don't even know exists.

NVDA shows 4 dark pool buys totaling $12M at $128–130 range
Flow shows $3.2M in call sweeps on ASK, 30 DTE, $135 strike
Greek flow shows +$8.4M net delta
ENTER: Buy $130C, 4 weeks out
STOP: $127 (below DP cluster)
TARGET: $138+ (2.5:1 R/R)
⚠️ Risk 1–2% per trade. Stop-loss at the dark pool print price level. Take profit at 2:1 R/R minimum. If all three signals don't align, DO NOT TRADE — discipline is the edge.
The Congressional Shadow
Political Insider × Institutional Holdings Momentum Tracker
WIN RATE62–71%
TIMEFRAME2–8 Week Positions
TAP ▾

Congressional members consistently outperform the S&P 500 by 12–26% annually (documented by UW's own tracking). This method combines their disclosed trades with institutional 13F holdings data to identify stocks where BOTH political insiders AND hedge funds are accumulating — creating a "smart money consensus" signal that precedes major policy-driven catalysts by weeks.

/api/congress/recent-trades→ Track real-time congressional buy/sell disclosures
/api/stock/{ticker}/institutional-holdings→ Cross-reference with hedge fund 13F accumulation
/api/stock/{ticker}/flow-recent→ Time entry using options flow momentum
DETECT

Poll /congress/recent-trades daily. Flag when 2+ members from relevant committees (Armed Services, Finance, Energy, Health) buy the SAME ticker or sector within a 14-day window. Single-member trades are noise. Multi-member clustering is signal.

CROSS-REF

Pull /institutional-holdings for flagged tickers. Look for: 3+ institutional buyers in most recent quarter, net shares INCREASING (not trimming), and at least one whale fund (>$10B AUM) adding. If institutions are selling while Congress buys — SKIP, Congress may be late.

TIME IT

Congressional disclosures are delayed 45 days. The REAL edge is timing your entry using /flow-recent: wait for a surge in call buying (>2x normal daily premium) as the catalyst approaches. This surge means OTHER smart money has identified the same catalyst. You ride the wave, not create it.

STRUCTURE

Buy slightly OTM calls (0.35–0.45 delta) with 6–10 week expiry. WHY OTM here? Because you're betting on a CATALYST (policy announcement, contract award, regulation change), you want asymmetric upside leverage. Use LEAPS for larger positions to reduce theta risk.

The most profitable version of this strategy (used by hedge funds like Renaissance Technologies and Point72) layers in SECTOR ROTATION logic. When multiple Congress members buy defense stocks, don't just buy those tickers — map the entire supply chain. If Raytheon gets Congressional attention, look at their key suppliers and subcontractors (often small/mid-caps) where the options market hasn't priced in the catalyst yet. The REAL money is in the second-order effects.

3 Congress members on Energy Committee buy XOM over 10 days
13F shows Bridgewater and Millennium adding positions
/flow-recent shows $5M in call sweeps, $85 strike, 45 DTE
ENTER: Buy $87C, 8 weeks out
STOP: Close if net flow reverses to puts for 2 consecutive days
TARGET: Next earnings or policy announcement
⚠️ Position size based on conviction tier: 2-member cluster = 0.5% risk, 3+ member cluster with institutional confirmation = 1.5% risk. Never hold through catalyst if options premium has already doubled — take profits and re-enter on pullback.
The Gamma Trap Reversal
Market Maker Hedging Dislocation Exploiter
WIN RATE71–78%
TIMEFRAMESame Day – 3 Days
TAP ▾

This is the most sophisticated method and the highest win-rate strategy employed by prop desks and volatility funds. When Gamma Exposure (GEX) reaches extreme levels, market makers are FORCED to hedge in predictable, mechanical ways — creating artificial price dislocations. By detecting these moments via the UW API and combining with the Market Tide indicator, you can systematically fade these forced moves for consistent mean-reversion profits.

/api/market/market-tide→ Detect extreme call/put imbalance across entire market
/api/stock/{ticker}/greek-flow→ Identify GEX extremes and delta hedging pressure
/api/flow/flow-alerts→ Spot anomalous sweeps that signal forced hedging activity
MONITOR

Track /market-tide for extreme readings. When the call premium ratio hits >75% or <25% of total flow, the market is at a sentiment extreme. These are NOT sustainable — they ALWAYS revert. The Market Tide is your macro filter that tells you WHEN to look for trades.

IDENTIFY

During extreme tide readings, pull /greek-flow for major ETFs (SPY, QQQ, IWM) and high-OI stocks. Look for massive positive GEX (gamma squeeze setup where MMs must buy as price rises, creating runaway moves that WILL reverse) or massive negative GEX (MMs sell as price drops, amplifying selloffs that overshoot and then snap back).

TRIGGER

The precision entry comes from /flow-alerts. Wait for 'Golden Sweep' or 'Repeated Hits' alerts that CONTRADICT the prevailing extreme. Example: Market at extreme bullish tide + massive positive GEX + suddenly a Golden Sweep of puts appears = smart money positioning for the reversal BEFORE it happens. This is your entry signal.

EXECUTE

Sell credit spreads INTO the extreme (sell call spreads at extreme bullish, sell put spreads at extreme bearish). WHY SPREADS? Because (1) you collect premium from inflated IV at extremes, (2) theta works FOR you as the extreme reverts, (3) defined risk protects against the rare case the extreme extends. Use 3–7 DTE for maximum theta capture.

The traders who extract the most from this — firms like Wolverine Trading and Optiver — understand the GEX 'flip zone.' There's a specific price level where dealer gamma exposure flips from positive to negative. ABOVE this level, MMs stabilize price (dampen volatility). BELOW it, they amplify moves (increase volatility). By monitoring where this flip zone is via the Greek flow endpoint, you can predict not just DIRECTION but the exact PRICE LEVEL where the regime change happens. Sell your spreads with the short strike at or near the flip zone for maximum edge.

Market Tide shows 78% call premium (extreme bullish)
SPY Greek flow shows +$2.1B GEX concentrated at $580
Golden Sweep alert: $1.8M in SPY puts, $575 strike, 5 DTE
ENTER: Sell $582/$585 call credit spread, 5 DTE, collect $1.20
STOP: Close if SPY breaks $584
TARGET: Let expire worthless or close at $0.60 (50% profit)
⚠️ Max risk per trade: 2% of account. Never sell naked — always use defined-risk spreads. Close at 50% max profit (don't get greedy on mean reversion). If the extreme extends 2 standard deviations beyond your entry, close for a loss immediately — the regime has changed.

KEY PRINCIPLES ACROSS ALL METHODS

CONFLUENCENever trade a single signal. Every method requires 3+ independent data confirmations before entry.
ASYMMETRYStructure every trade for minimum 2:1 reward-to-risk. Let the math compound in your favor over hundreds of trades.
PATIENCEThe best traders execute fewer, higher-conviction trades. These methods generate 3–8 setups per week, not 30.
AUTOMATIONBuild these as Python scripts polling the UW API. Human emotion is the #1 edge destroyer. Let the system scan, you just execute.