Smart Insider Transaction Index (SITI)

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The Smart Insider Transaction Index (SITI) is a dynamic metric that reflects the sentiment of insider trading activities within a given period. It is calculated by weighing the USD amount of "buy" transactions against the total USD amount of both "buy" and "sell" transactions for a specific month.

SITI focuses on public companies where insider activities have demonstrated a significant impact on stock performance. The index is calculated based on the term 'long-term insider.'

A long-term insider is defined as an insider who has executed at least 10 transactions within three years or whose transaction turnover has reached a threshold of 1 million USD. This approach ensures that the index reflects substantial and sustained insider activity, enhancing its reliability and relevance.

Note: Due to the ongoing historical data ingestion, we are constantly recalculating the SITI index. Don't forget to check out our global coverage on this page.

Calculation Steps:

1. Buy Amount Accumulation:
   
   • Sum the USD amounts of all "buy" transactions for the month.
2. Sell Amount Accumulation:
   
   • Sum the USD amounts of all "sell" transactions for the month.
3. Total Transaction Amount:
   
   • Combine the total USD amounts of both "buy" and "sell" transactions.
4. SITI Calculation:
   
   • Calculate the SITI as a percentage, representing the weighted contribution of "sell" transactions to the total insider trading activity.
   • SITI = (Sell Amount / Total Transaction Amount) * 100

Interpretation:

A higher SITI indicates a stronger prevalence of "sell" transactions relative to "buy" transactions.

While this index is not a true volatility index, you may consider it a 'fear gauge' that functions similarly to the VIX, reflecting market sentiment and potential future volatility.

SITI values closer to 100 suggest a more bearish sentiment among insiders, while values closer to 0 indicate a more bullish sentiment.