Author: Doug Pless
Professional Trader & SpotGamma Content Contributor
Case Study: A Step-by-Step Nvidia Bear Trade Breakdown
In this case study, full-time Professional Trader and SpotGamma Content Contributor Doug Pless demonstrates how he uses SpotGamma tools to plan and execute a trade in Nvidia stock. The process involves positional analysis, focusing on market makers’ positions and how they change daily, to develop a thesis on trading range, volatility, and directional bias. The execution process includes monitoring price reactions at Key Gamma Levels, real-time order flow, and market maker hedging flow to confirm the thesis. Doug highlights the importance of the HIRO chart, which displays Put & Call activity at different price levels. Traders identified a bearish sentiment towards Nvidia based on Delta activity, with traders selling calls and buying puts and market makers selling stock to hedge their Delta exposure. A timely alert from the HIRO Flow Alert System drew attention to this significant options hedging activity, potentially signaling potential trading opportunities for those looking to capitalize on the bearish sentiment towards NVDA.
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