How do you effectively use options flow to make better trading decisions? Is there any websites or resources to use this tool?
I've never gleaned much of anything from option flow but that doesn't mean that there isn't something there.
What I would offer is that there are other things that have to be considered. For example, if there's a very large buy at one strike, look for a same size sell at another strike. That indicates a spread and is less likely to be a strategy in advance of some pending news.
Also, you have no idea what the directional bent is if a large purchase occurs. For example, if someone buys 100 calls, are they bullish? Or could that 100 call purchase be a hedge for 10,000 short shares (bearish)? Or could it be a delta neutral hedge for 50 calls with twice the delta (neutral)?
If there's clear and consistent volume and increase in Open Interest then it's more likely to be in advance of news. And not that I lend any credence to it but the put-call ratio indicator assumes that most investors are wrong. So who do you believe?
If you can effectively use options flow to make better trading decisions then it's worth the effort. Otherwise, not so much.