Hedging pressure and sweeps

Hedging pressure accumulates the share-equivalent that option flow forces dealers to hedge — aggressor side times delta times size times 100 — and draws it as a signed curve around zero. Sweep and multi-leg detection feed the tags on the tape from the same pure analytics module.

Senzoukria · Documentation · Updated September 2026


Where to find it

Where
Option Flow page (/flow) → right column, 'Hedging Pressure · dealer share-equivalent'
Formula
Cumulative sum of aggressor side × delta × size × 100, in share equivalents
Excluded
Prints without a delta or without an identifiable side
Minimum to draw
5 points; below that the panel does not render
Bucketing
One point per second
Sweep rule
≥3 prints within 800 ms, same contract and side, across ≥2 exchanges; golden at ≥$500K

What it does

The panel reads the same window of prints as the rest of the page and accumulates, print by print, the share equivalent a dealer would have to hedge. A client buying calls leaves the dealer short those calls and short delta, so the dealer buys the underlying: the contribution is positive. Selling calls, or buying puts, pushes the curve down. The line is drawn around a zero axis and the area between the two is filled; line and fill take the colour of the current cumulative value — green when it is positive, pink when it is negative — and that value is labelled at the right edge in share equivalents.

The computation is deliberately narrow. A print that carries no delta, or whose aggressor side cannot be read, is dropped from the series rather than estimated — the module refuses to manufacture pressure out of noise. Points are bucketed to the second so a busy tape does not produce one point per print, and the panel does not render at all below five points.

The same analytics module produces the sweep and multi-leg groupings that the tape displays as badges. A sweep is a burst of aggressive prints on one contract and one side, spread over at least two exchanges within 800 milliseconds — the signature of an order too large for a single book and split by the router. Its tooltip reports the number of prints, the number of exchanges and the total premium. A sweep reaching $500K total premium is tagged GOLDEN. Multi-leg groups different contracts of the same underlying, same size, printed within 25 milliseconds of one another.

Settings

Thresholds used by the pressure series and the sweep detector
SettingDefaultWhat it changes
Contract multiplier100Converts contracts into share equivalents in the pressure sum
Eligible printsSide is buy or sell and delta is finiteEverything else is excluded from the series
Series bucketing1 secondOne plotted point per second rather than per print
Render floor5 pointsBelow it the panel is not shown at all
Sweep window800 msMaximum gap between consecutive prints of one burst
Sweep minimum prints3Bursts shorter than this are not tagged
Sweep minimum exchanges2A burst confined to one exchange is not a sweep
Golden threshold$500,000 cumulative premiumUpgrades a SWEEP badge to GOLDEN
Multi-leg window25 ms, identical size, different contractsWhat gets the MULTI badge

How to use it

  • Read the sign and the slope, not the absolute level: the curve starts from the oldest print still in the window, so its zero is arbitrary.
  • Put the pressure curve next to the call/put race — the race says who paid, the pressure says what the hedge implies mechanically.
  • Use the sweep tooltip on the tape to see how many exchanges a burst crossed before treating it as a single order.
  • Treat MULTI rows as spread legs: their individual side tells you little about the structure's direction.

Limits and pitfalls

Delta comes from the provider, so a source that publishes no greeks produces no curve at all. Coverage gaps shrink the series silently in the sense that excluded prints are simply absent — they are never estimated.

This is a mechanical reading of the flow in one window, not a forecast. Dealers hedge across instruments and time, and the app has no visibility on what they actually hold. Nothing here places an order or sizes a position; the Option Flow module is analysis only, and its market data is billed by the provider.

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Frequently asked questions

Why is the hedging pressure panel missing entirely?
It needs at least five eligible points. If the window holds fewer prints with both a delta and an identifiable side, the panel does not render rather than drawing a line from almost nothing.
Is this the same as the hedging-flow indicators sold by options vendors?
It reads the same idea, but computed locally from the prints in the window with the formula written in the panel's tooltip: aggressor side x delta x size x 100. No vendor model and no vendor data are involved, and prints without a delta or a readable side are dropped rather than estimated.
Why is a large single print not tagged as a sweep?
A sweep is defined by fragmentation, not by size: three or more prints within 800 ms on the same contract and side, across at least two exchanges. One large print on one venue is a block, not a sweep.

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