The 3 sweep detection filters that kill 90% of your false positives
Most people building a sweep alert bot start by piping raw options flow straight into a Discord webhook. Then they get 400 alerts a day and everyone mutes the channel within a week.
Here are the 3 filters that actually separate signal from noise:
Premium-to-open-interest ratio. A sweep with $50k premium on a contract with 20 OI is a much bigger deal than the same premium on a contract with 50k OI. Filter for premium/OI above a threshold (I use 0.15+ as a starting point) instead of a flat premium cutoff.
Aggressor side confirmation. Raw sweep feeds often include both buy-side and sell-side sweeps without labeling. If your data source doesn't tag the aggressor, cross-reference against the NBBO at execution time — trades printing at or above the ask are buy-side aggression, at or below the bid are sell-side. Skipping this step is the #1 reason alert feeds get called "random."
Repeat-strike clustering. A single sweep is noise. Three sweeps on the same strike/expiry within a 10-minute window is a signal. Build a rolling window aggregator before you alert — it cuts volume by ~70% and dramatically increases the win rate of whatever you're alerting on.
If you're building (or buying) a sweep alert service, ask whoever runs it whether they do all three. Most don't.
