SPX ended the week at a major SpotGamma support level of 6,450, driven by a combination of volatility compression, stabilizing dealer hedging flows, and the power of large options positioning. This week followed the trajectory outlined in our Founder’s Note on Monday morning: a benign CPI reading sent volatility even lower, and the SPX rose from 6,360 […]
Market Analysis
Market Drifts Through “Death Valley” Vols
The S&P 500 delivered a week that looked dramatic at times, but ended up just drifting slightly — closing up 1.8% after a wild ride. While volatility spiked early in the week from tariff deadlines and semiconductor earnings disappointments, IV quickly collapsed as 0DTE flows reasserted control. This vol crush became a self-reinforcing tailwind for […]
From “Zombie Market” to Vol Awakening
What a difference a week makes. The S&P 500 went from consistently hitting all-time highs with 6,450 touched on Wednesday to close Friday down 1.6% to 6,238.This dramatic shift from “zombie market” to spiking realized volatility exemplifies the need for protective puts and/or VIX calls as insurance, as we highlighted in the daily pre-market Founder’s Notes throughout […]
Animal Spirits Roar as Market Catalysts Loom
This week delivered a fascinating mix of meme stock chaos, trade deal optimism, and mega tech earnings keeping traders on their toes despite unusually calm waters for the broader market. The S&P 500 ultimately gained ground, closing at all-time-highs, just below the pivotal SPX 6,400 gamma strike. Call option volumes exploded this week alongside broader […]
July OPEX Opens the Window of Weakness
This week delivered everything from mini-flash crashes to meme stock explosions, capped off with a July OPEX that reinforced our thesis about dangerously complacent volatility expectations. Our key levels proved their worth again this week: resistance at 6,325 limited upside attempts, and support zones at 6,250 and 6,200 provided reliable bounce points. The 6,200 pivot […]
Put-Covering Rallies & Signals in Our SPY Gamma Exposure (GEX)
The big question: Was that rally all put covering? Signals in SpotGamma’s custom SPY GEX say “Yes” This week the S&P500 rallied ~3% to close the Liberation Day downside price gap (red horizontal line). This led the S&P500 to notch a 9-day win streak – the longest such streak since November 2004. With that, the VIX […]
The Anatomy of an SPX 0DTE Driven Market
U.S. equities surged on May 12, 2025, as the S&P 500 closed +3% to 5,848, with intraday action reflecting a more modest 0.23% gain, after the U.S. and China agreed to a significant 90-day reduction in reciprocal tariffs. What did any of this have to do with 0DTE SPX options? Hint: The 0.23% intraday gain. The Anatomy […]
SpotGamma on Stock Market TV
SpotGamma joined Stock Market TV to discuss how options drive stocks, including what signals are provided by Call Walls & Put Walls. We also dove into why the VIX can often be a misleading volatility signal. Find High-Reward Setups — FastStart Profiting
What Caused the Market Selloff Before the Headlines — And Why Most Traders Missed It
Key Takeaway: On April 23, a trader or group unloaded 37,000 SPX call contracts in under 30 minutes — a massive move that helped wipe out billions in market value and trigger an 81-handle selloff. It looked bullish. It wasn’t. This was a synthetic short, a hidden bearish bet most traders misread completely. Why? Because […]
Spot the Flow, Seize the Edge: 5 Options Signals Every Trader Should Be Watching
The Tariff Deadline (4/2) is looming, with big implications for your trading. This wildcard event could tip sector flows, shift hedging activity, and force institutions to adjust — fast. Yet this market catalyst comes with its own set of risks and opportunities. The difference comes down to how well you can see a setup before […]
