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Glossary Detail: Net Flow

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Backtesting Net Flow on High-Beta Names

Net dollar value of call premium minus put premium traded — reveals the directional bias of options money flow.

Further Details:

Net Flow measures the net dollar premium flowing into call options versus put options. Positive net flow means more premium is being spent on calls (bullish positioning); negative net flow means more premium is going to puts (bearish positioning or hedging).

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