Gamma Exposure (GEX) Levels and Price Action:
1. Key Levels Identified:
* Highest Positive NETGEX (Call Resistance): $80
* This is the most significant resistance level where price may struggle to break due to gamma positioning.
* 2nd Call Wall: $75
* A critical intermediate resistance level that will act as a test for bullish momentum.
* HVL (Hedging Volatility Level): $69
* This level serves as a potential support where hedging activities may stabilize the price.
* PUT Walls:
* 1st PUT Wall: $67
* Immediate support with substantial gamma activity suggesting strong buyer presence.
* 3rd PUT Wall: $62
* A deeper support zone where significant buying interest is likely if the price falls sharply.
2. Price Action:
* PLTR is currently trading around $71.35, near the HVL level. Consolidation around this area indicates gamma-driven hedging activities are influencing price stability.
Technical Indicators Analysis:
1. MACD:
* Slight bearish momentum with a negative crossover. If this trend continues, it may push the price toward the $69-$67 range.
2. Stochastic RSI:
* Near oversold territory, signaling a possible bounce or consolidation around the HVL level ($69).
3. Trendlines:
* A descending trendline aligns with recent price action, suggesting resistance around the $75 level.
Options Strategy Plan:
1. Bullish Scenario:
* If PLTR holds $69 and pushes above $75:
* Call Option Entry: Strike price at $80, expiration 1-2 weeks.
* Target: $80 (next resistance level).
* Stop-Loss: $68.
2. Bearish Scenario:
* If PLTR breaks below $69:
* Put Option Entry: Strike price at $67, expiration 1-2 weeks.
* Target: $62 (next support level).
* Stop-Loss: $71.
3. Neutral Strategy:
* If PLTR consolidates between $69 and $75:
* Iron Condor Strategy:
* Sell a call at $80 and a put at $67.
* Buy a call at $85 and a put at $62 to cap risk.
Recommendation for Expiration Date:
* Short-Term Expiry (1-2 weeks): Optimal for quick movements around the identified gamma levels.
* Mid-Term Expiry (3-4 weeks): Provides flexibility if price action takes time to react to gamma positioning.
Summary of Gamma Insights:
* The $75 level serves as an intermediate resistance and a potential breakout point.
* The $69 HVL is a strong support, providing a buffer against downside momentum.
* A break below $69 could lead to a retest of $67, while sustained momentum above $75 could aim for $80.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always conduct thorough research and consider risks before trading.
1. Key Levels Identified:
* Highest Positive NETGEX (Call Resistance): $80
* This is the most significant resistance level where price may struggle to break due to gamma positioning.
* 2nd Call Wall: $75
* A critical intermediate resistance level that will act as a test for bullish momentum.
* HVL (Hedging Volatility Level): $69
* This level serves as a potential support where hedging activities may stabilize the price.
* PUT Walls:
* 1st PUT Wall: $67
* Immediate support with substantial gamma activity suggesting strong buyer presence.
* 3rd PUT Wall: $62
* A deeper support zone where significant buying interest is likely if the price falls sharply.
2. Price Action:
* PLTR is currently trading around $71.35, near the HVL level. Consolidation around this area indicates gamma-driven hedging activities are influencing price stability.
Technical Indicators Analysis:
1. MACD:
* Slight bearish momentum with a negative crossover. If this trend continues, it may push the price toward the $69-$67 range.
2. Stochastic RSI:
* Near oversold territory, signaling a possible bounce or consolidation around the HVL level ($69).
3. Trendlines:
* A descending trendline aligns with recent price action, suggesting resistance around the $75 level.
Options Strategy Plan:
1. Bullish Scenario:
* If PLTR holds $69 and pushes above $75:
* Call Option Entry: Strike price at $80, expiration 1-2 weeks.
* Target: $80 (next resistance level).
* Stop-Loss: $68.
2. Bearish Scenario:
* If PLTR breaks below $69:
* Put Option Entry: Strike price at $67, expiration 1-2 weeks.
* Target: $62 (next support level).
* Stop-Loss: $71.
3. Neutral Strategy:
* If PLTR consolidates between $69 and $75:
* Iron Condor Strategy:
* Sell a call at $80 and a put at $67.
* Buy a call at $85 and a put at $62 to cap risk.
Recommendation for Expiration Date:
* Short-Term Expiry (1-2 weeks): Optimal for quick movements around the identified gamma levels.
* Mid-Term Expiry (3-4 weeks): Provides flexibility if price action takes time to react to gamma positioning.
Summary of Gamma Insights:
* The $75 level serves as an intermediate resistance and a potential breakout point.
* The $69 HVL is a strong support, providing a buffer against downside momentum.
* A break below $69 could lead to a retest of $67, while sustained momentum above $75 could aim for $80.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always conduct thorough research and consider risks before trading.
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.