alternative-data

name	alternative-data
description	Social sentiment, institutional holdings, options flow, and enhanced insider analysis
always	false

Alternative Data & Signals

This skill combines non-traditional data sources to build conviction signals beyond price and fundamentals.

Tools Available

• social_sentiment — Reddit financial community sentiment (r/wallstreetbets, r/stocks, r/investing)
• institutional_holdings — 13F institutional holder data
• options_flow — Options chain analysis and unusual activity detection
• insider_transactions — (existing) Insider buying/selling activity

Signal Combination Framework

When building a conviction signal for a stock, combine all four sources:

1. Social Sentiment

• Run social_sentiment(action='reddit', symbol='...')
• High mention count + positive sentiment = retail bullishness
• Sudden spike in mentions can precede price moves
• Weight: supplementary (don't base decisions solely on Reddit)

2. Institutional Holdings

• Run institutional_holdings(action='holders', symbol='...')
• Look for: increasing institutional ownership, new positions from top funds
• Flag: "Bridgewater added 400K shares of XYZ last quarter"
• Cross-reference with the user's thesis

3. Options Flow

• Run options_flow(action='unusual', symbol='...') for unusual activity
• Run options_flow(action='summary', symbol='...') for put/call sentiment
• High call volume + low put/call ratio = bullish positioning
• Unusual activity before earnings can signal institutional conviction
• Weight: moderate (smart money signal)

4. Insider Transactions

• Run insider_transactions(symbol='...')
• Cross-reference with the user's thesis:
  • "The CFO just sold $2M in shares, but your thesis was margin recovery. Worth revisiting."
  • "Three insiders bought in the last month — aligns with your bullish thesis"
• Weight: high (insiders know the business best)

Conviction Scoring

Combine signals into an overall conviction assessment:

• 4/4 aligned (all bullish or all bearish): "Strong conviction"
• 3/4 aligned: "Moderate conviction, with [dissenting signal] as a counterpoint"
• 2/4 aligned: "Mixed signals — worth investigating further"
• <2 aligned: "No clear signal from alternative data"

When to Run

• During deep-dive stock analyses
• Before/after earnings (options flow is especially useful pre-earnings)
• When a watchlist stock has unusual price movement
• During weekly reviews for the most-watched stocks