What is Net Institutional Flow?

A short-term signal that tracks market activity of institutions based on their Securities and Exchange Commission (SEC) filings. While high numbers mean big purchases that could push the price up with low numbers meaning the opposite, it is not advisable to trade using this signal by itself.

How to use Net Institutional Flow?

Net Institutional Flow ranges from 0 to 100 and can be examined for a certain stock or an aggregation of stocks such as ETFs.

It is generally not advisable to bet against a stock based solely on Net Institutional Flow, because SEC filings are a single snapshot and typically lag behind live trading at least 6 weeks. Use caution with the Net Institutional Flow signal, because if this number indicates institutions are long, it is certainly possible they are short by the time you see any reported Net Institutional Flow number in or out of Prospero.ai.

A High Net Institutional Flow (80+) for a stock indicates significant buying activity in terms of stock and call options, with less selling or buying of put options.

A Low Net Institutional Flow (<20) for a stock indicates institutions are selling stock or buying put options more than they are buying stock or call options.

Use Net Institutional Flow alongside other signals, such as Net Options Sentiment, for better insights.

Update Frequency for Net Institutional Flow

Net Institutional Flow updates once per day as these are driven by 13F and 13G filings of businesses. Checking this number once a day is more than enough. Net Institutional Flow is classified as a short-term signal because when this number does move, such as when a well-known institution takes a position in a stock, it can cause a sharp price move in the short term.