Systematic single stock signal

A long-only, systematic book on US single stocks based on institutional investors net option delta buying.

1. What the signal measures

The strategy targets US single-name equities with strong institutional net buying relative to recent history. Institutional flow is the cohort that carries the signal. Retail flow contains information too, but the institutional side is cleaner, as one would expect from participants with more capital, longer horizons, and better information. The options-overview piece documents the behavioural differences across the three cohorts (retail, institutional, dealer) in detail: retail is contrarian at extremes, institutional leads, and dealer positioning is a mirror of the other two. This strategy conditions on the institutional side because that is where the directional information is most concentrated.