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KEY CONCEPT

What Is the RepeatedHits Options Signal?

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By Matt
Mining engineer turned options trader. Built Flow Proof because the existing tools weren't worth what they charged.

Disclaimer: All ticker prices, premiums, and return calculations shown are examples for educational purposes and reflect market conditions at the time of writing. They are not trade recommendations. Options trading involves significant risk of loss. Past performance of any strategy does not guarantee future results. Consult a licensed financial professional before trading.

Learn what it means when the same options strike gets hit multiple times in a session — a key signal of institutional accumulation and conviction.

The Mechanics

The RepeatedHits signal fires when the same strike and expiration receive multiple separate trades within a single trading session. This pattern reveals institutional accumulation — a fund systematically building a position by breaking a large order into smaller pieces to avoid tipping off the market.

Why Institutions Break Up Orders

A hedge fund wanting to buy 20,000 contracts doesn't execute one trade — that would immediately move the market against them. Instead, they use algorithmic execution to drip the order in over minutes or hours: 500 here, 800 there, 1,200 more. Each individual trade looks unremarkable, but the pattern of 10, 15, or 20 hits on the same contract reveals the campaign. This iceberg order behavior is distinct from retail activity, which rarely concentrates on a single strike repeatedly.

Identifying the Pattern

RepeatedHits is identified by counting distinct transactions on the same contract (ticker + strike + expiry + option type) within a session. Five or more hits is significant. Ten or more is highly significant. The pattern is even stronger when: each successive trade hits the ask (buyer aggression), trade sizes are consistent (algorithmic execution), and the hits span 30-60 minutes (sustained campaign rather than a single burst).

RepeatedHits vs Single Large Trade

A single 10,000-contract block trade might be impressive, but it could be a hedge, a roll, or part of a spread. Ten separate 1,000-contract trades on the same strike over two hours is almost certainly a deliberate accumulation campaign. The repeated, independent decision to buy more at each price level demonstrates sustained conviction that a one-time block doesn't.

The Real Edge

RepeatedHits is one of the most reliable institutional behavior signals because it reveals deliberate, sustained conviction rather than a single decision point.

The Conviction Gradient

Think of institutional signals on a conviction gradient. At the low end: a single block trade (could be anything). In the middle: a sweep (shows urgency). At the high end: repeated hits over an extended period (shows a campaign). Each additional hit on the same contract raises the probability that this is informed, directional positioning. By the 10th hit, coincidence becomes implausible.

Why Retail Doesn't Create This Pattern

Retail traders buy options in ones and twos, on different strikes, at different times. Even when retail enthusiasm concentrates on a single stock (meme stock events), the activity spreads across dozens of strikes. Concentrated, repeated activity on a single strike is almost exclusively institutional behavior — which is why it's such a clean filter for separating smart money from noise.

Combining with Other Signals

RepeatedHits becomes most powerful when combined with other conviction indicators: ask-side execution (aggressive buying), ascending fills (paying more each time), volume exceeding open interest (new positions), and no upcoming earnings (not an event bet). When all these signals align on a single contract, the conviction level is at its maximum.

Putting It Into Practice

Repeated hits are easy to spot once you know where to look. You don't need an automated detector.

Spotting Repeated Hits Yourself

In a flow tool, filter by ticker and sort by contract. If the same strike and expiration show up again and again in one session, count the prints and add up the premium. In your broker's time and sales, filter to a single contract and scan for a steady stream of similar-size fills over 30 to 60 minutes. Five or more separate hits is worth noting. Ten or more looks like a campaign.

Checking the Quality of the Pattern

Not every cluster means the same thing. Hits at the ask are stronger than hits at the bid. Volume above open interest means new positions, not closings. Rising prices across the hits show the buyer paying up. An upcoming earnings date makes the whole pattern less reliable, because pre-earnings flow is often hedging.

Using It as a Premium Seller

Repeated call buying on a stock you want to own is a supportive backdrop for selling a cash-secured put. Repeated put buying is a reason to wait. Before you sell, check IV Rank: Flow Proof's free put scanner grades 25 stocks A to F every day, and the trade blotter tracks the position once you're in.

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