Gamma Exposure (GEX) Levels and Price Action:
1. Key Levels Identified:
* Highest Positive NETGEX (Call Resistance): $150
* A significant resistance zone that aligns with market makers' hedging activities to balance their gamma exposure.
* 2nd Call Wall: $145
* Intermediate resistance with a moderate gamma buildup, representing a potential pause in upward momentum.
* 3rd Call Wall: $142
* A key pivot point where price may either consolidate or face selling pressure if approached too quickly.
* HVL (Hedging Volatility Level): $139
* A dynamic level where market makers manage their gamma risk. This could act as a magnet for the price in the short term.
* PUT Walls:
* 2nd PUT Wall: $135
* Strong near-term support that aligns with a large hedging zone for puts.
* 3rd PUT Wall: $130
* A significant defense level, likely to hold unless broader bearish sentiment dominates.
2. Price Action:
* NVDA is currently trading around $135.30, sitting at the 2nd PUT Wall. A bounce from this level could lead to a retest of $139, while a breakdown might see it gravitate toward $130.
Technical Indicators Analysis:
1. MACD:
* The MACD line is in bearish territory but shows signs of potential convergence. Watch for a crossover near support levels for confirmation of a reversal.
2. Stochastic RSI:
* Currently oversold, suggesting that a short-term bounce may be imminent. However, caution is warranted if broader market sentiment remains negative.
3. Trendlines:
* Downward-sloping resistance aligns with $139, reinforcing its significance as a potential pivot zone.
Options Strategy Plan:
1. Bullish Scenario:
* If NVDA bounces above $139:
* Call Option Entry: Strike price at $145, expiration within 1-2 weeks.
* Target: $145 (next resistance level).
* Stop-Loss: $133.
2. Bearish Scenario:
* If NVDA breaks below $135:
* Put Option Entry: Strike price at $130, expiration within 1-2 weeks.
* Target: $130 (major support zone).
* Stop-Loss: $137.
3. Neutral Strategy:
* If NVDA consolidates between $135 and $139:
* Iron Condor Strategy:
* Sell a call at $145 and a put at $130.
* Buy a call at $150 and a put at $125 to limit risk.
Recommendation for Expiration Date:
* Short-Term Expiry (1-2 weeks): Ideal for directional trades based on gamma positioning.
* Longer Expiry (2-3 weeks): Allows time for price to test broader levels while mitigating time decay risks.
Summary of Gamma Insights:
* The $135 level is critical for NVDA, acting as a near-term support zone.
* A move above $139 aligns with positive gamma momentum, making $145 a plausible target.
* The $130 level is the ultimate defense point, with significant PUT walls indicating strong buyer interest.
Disclaimer:
This analysis is for educational purposes only and should not be considered financial advice. Always perform your own due diligence and manage risks accordingly.
1. Key Levels Identified:
* Highest Positive NETGEX (Call Resistance): $150
* A significant resistance zone that aligns with market makers' hedging activities to balance their gamma exposure.
* 2nd Call Wall: $145
* Intermediate resistance with a moderate gamma buildup, representing a potential pause in upward momentum.
* 3rd Call Wall: $142
* A key pivot point where price may either consolidate or face selling pressure if approached too quickly.
* HVL (Hedging Volatility Level): $139
* A dynamic level where market makers manage their gamma risk. This could act as a magnet for the price in the short term.
* PUT Walls:
* 2nd PUT Wall: $135
* Strong near-term support that aligns with a large hedging zone for puts.
* 3rd PUT Wall: $130
* A significant defense level, likely to hold unless broader bearish sentiment dominates.
2. Price Action:
* NVDA is currently trading around $135.30, sitting at the 2nd PUT Wall. A bounce from this level could lead to a retest of $139, while a breakdown might see it gravitate toward $130.
Technical Indicators Analysis:
1. MACD:
* The MACD line is in bearish territory but shows signs of potential convergence. Watch for a crossover near support levels for confirmation of a reversal.
2. Stochastic RSI:
* Currently oversold, suggesting that a short-term bounce may be imminent. However, caution is warranted if broader market sentiment remains negative.
3. Trendlines:
* Downward-sloping resistance aligns with $139, reinforcing its significance as a potential pivot zone.
Options Strategy Plan:
1. Bullish Scenario:
* If NVDA bounces above $139:
* Call Option Entry: Strike price at $145, expiration within 1-2 weeks.
* Target: $145 (next resistance level).
* Stop-Loss: $133.
2. Bearish Scenario:
* If NVDA breaks below $135:
* Put Option Entry: Strike price at $130, expiration within 1-2 weeks.
* Target: $130 (major support zone).
* Stop-Loss: $137.
3. Neutral Strategy:
* If NVDA consolidates between $135 and $139:
* Iron Condor Strategy:
* Sell a call at $145 and a put at $130.
* Buy a call at $150 and a put at $125 to limit risk.
Recommendation for Expiration Date:
* Short-Term Expiry (1-2 weeks): Ideal for directional trades based on gamma positioning.
* Longer Expiry (2-3 weeks): Allows time for price to test broader levels while mitigating time decay risks.
Summary of Gamma Insights:
* The $135 level is critical for NVDA, acting as a near-term support zone.
* A move above $139 aligns with positive gamma momentum, making $145 a plausible target.
* The $130 level is the ultimate defense point, with significant PUT walls indicating strong buyer interest.
Disclaimer:
This analysis is for educational purposes only and should not be considered financial advice. Always perform your own due diligence and manage risks accordingly.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.