Although the SPX is currently trading within a relatively neutral positive gamma range, it’s worth taking a closer look at what the week might hold. This week, SPX is moving between critical resistance and support levels, which are showing significant options activity. The 5900 level is the key CALL resistance, acting as the gamma wall for the next 7 days...
I’d like to share my thoughts below after analyzing the QQQ option chain. In this analysis, I focus exclusively on the weekly time range, examining the QQQ option chain and the changes in top-tier options metrics. 🟨 Decline in Put Pricing Skew and Increase in IVx The decline in put pricing skew on Options Oscillator suggests that put options are becoming...
I’d like to share my thoughts below after analyzing the SPX option chain. In this analysis, I focus exclusively on the weekly time range, examining the SPX option chain and the changes in top-tier options metrics. 🔶 Breakout and Bullish Outlook Last Friday's price action saw the SPX break through the 5800 call gamma wall, generating strong bullish momentum ....
Analyzing the major pivots in a top-down approach in the context of trading volatility, and aligning them with TradingVolatility's calculated cumulative gamma levels, particularly focusing on the highest three expiration strikes, offers valuable insights into market dynamics and risk management. 1.Top-Down Approach: The top-down approach involves starting...
Gex is short for Gamma Exposure. I started tracking gamma exposure over a year ago. In fact I posted an idea with a really good explanation idea of gamma exposure but the idea was banned and I never got around to reposting. So many private messages asking me to explain GEX, I decided to repost the banned post without the restricted content in it. If you want the...
What is a Put Spread Collar? A put spread collar is an options strategy used to insure underlying assets from downside while limiting upside. Why would someone use a Put Spread Collar? What is unique about this strategy is the premium is paid for by selling an 5-6% OTM call and selling at 20% OTM put. Selling those 2 options pays for the long put premium. ...
1.. double bounces on Ichimoku Cloud. 2.. Weekly Tenkan-Sen crossing over Kijun-Sen. and a 3... Chikou Span crossing over prior price confirming trend. 21D moving average on GEX flatlining Wheat prices, hope you don't like bread. Oil prices, hope you like being stuck at home. Nat Gas, hope you have a wood stove next winter. Vodka losing their damn...
I'm going to breakdown JPM big 20 billion dollar Put Spread Collar Hedge trade early this quarter. The trade usually gets a lot of attention when they do the roll/reset on the day it expires each quarter. For the uninitiated, this trade occurs every quarter by JPM as a premium neutral hedge (market crash protection) for a 20B fund. Furus try to explain the...
Last 2 weeks have been bearish through APPL and TSLA earnings. Attention now turns to Amazon earnings (feb2) as they teeter on oversold RSI and below 2yr support. Not regaining this support from bad earnings will likely see this S&P bearish flag breakout to the downside. Canadians wielding pitchforks and torches, Russia and nato saber rattling and China...
I updated the GEX indicator this morning to include puts & calls so you can visualize the changes in gamma exposure. If you want to see other tickers, head on over to www.spyvsgme.com . Once I’m happy with the indicator I will publish the source code. What I keep seeing is the puts building up lower (80 strike) bringing down the gamma zero strike which is...
A bearish week is an understatement for how much and how quickly the markets turned and broke the bottom of a 2 yr bull trendline. If you read my bear review for Jan, I identified how important this last OPEX cycle was going to be. What I discovered last week was that the indexes crashed through a significant gamma zero line when FOMC (JAN5) indicated more...
Boy George this week has been nuts. I haven't had as much time to work on the GEX tool as I had hoped but I did get some work done on testing it. Check it out at www.spyvsgme.com A lot of gamma exposure rolled off this week and brought the gamma zero strike from 140 down to 125 and a 2.3M GEX. Price target of 125 this week seems reasonable as total GEX...
You may have heard about this greek called Gamma. If you haven’t, I’m not going to talk about it much except to tell you that it's important. I told you I would do something special for my 1yr GME anniversary, so I took to coding up a Gamma exposure tool (GEX) that I will be giving out for free once I get it tested next week. The tool is simple enough but...
Gamma exposure (GEX); refers to the sensitivity of existing option contracts to changes in the underlying price. Like with DPI, substantial imbalances can occur between market-makers' call- and put-option exposures, and when those imbalances occur, the effect of their hedges can either accelerate price swings (like a squeeze) or stifle movement entirely.
We've been seeing a huge rise in the Dow Jones, now it needs a breather so I'm trying to enter a short after a possible stop hunt to the upside, right around 34k. The market is driving through a bunch of potholes with fears of QE ending. Powell mentioned the FED will taper QE before they hike rates, hedge funds with exposure to quadrillions in the derivatives...
SPX looks bullish even though GEX is up and DIX is down, similar to september sell off.