How Option Flows Helped to Navigate the Small-Cap Madness Monday January 01 1999 Try SpotGamma HIRO Indicator for Free Real-time options data See when options drive stocks 0DTE filter for short-term trades Get Started Free Key Takeaways The unprecedented +12% surge in IWM/Russell 2000 (R2k) marked the most overbought condition for any major US Index […]
Market Analysis
Coinbase Swing Trade Delivers 39% Return as SpotGamma Signals Flag Bullish Breakout Setup
When volatility, positioning, and directional signals align, swing trades can deliver strong returns with defined risk. Coinbase (COIN) provided a clean example of this, as multiple SpotGamma indicators pointed to a bullish setup with expanding range potential. Shifts higher in key Gamma levels, combined with rising demand for calls, signaled that traders were positioning for […]
The OPEX Effect: July 2024 | Inside What is Driving This Weird Market
In this episode of the OPEX Effect, we explore the current market rally and discuss the concept of “correlation spasms” – unusual movements and relationships between market components. We examine record low volatility, the outsize impact of mega-cap tech stocks, and the recent surge in small-caps. We analyze the prevalence of zero days-to-expiry options trading […]
Why Does Record Low Stock Correlation and Volatility Matter?
Understanding Correlation and Volatility in the Stock Market Introduction This video sheds light on the concepts of stock volatility and correlation, particularly focusing on how correlation metrics influence market behavior and volatility trends. This post will summarize the key points discussed, emphasizing the impact of correlation on volatility and market dynamics. Correlation Metrics and Their […]
TrendSpider: SpotGamma’s Latest Integration
You’ve asked for it – and we’ve delivered! This has been one of the most requested integrations by our respective communities: SpotGamma’s key trading levels are now live within the TrendSpider platform. What is TrendSpider? TrendSpider is a powerful charting software designed by traders for traders. It offers a comprehensive and modern trading solutions that […]
NVIDIA Rejection at Call Wall Triggers Intraday Selloff as SpotGamma Delivers High-Conviction Short Setup
When large amounts of Gamma are set to expire and price approaches key resistance, volatility and directional moves can accelerate quickly. NVIDIA (NVDA) provided a textbook example of this dynamic, as a rally into a major call wall led to a sharp reversal driven by options positioning. With heavy Call Gamma dominating the structure and […]
Stock & Bond Correlations: “No Crying in Correlation”
Alpha Exchange
S&P 500, Correlation & Low Volatility: The Big Trade Underneath the Strangely Calm Surface of the S&P 500 | Odd Lots
In the latest episode of Odd Lots, Tracy Alloway and Joe Weisenthal explore current market conditions, emphasizing the interplay between dispersion, correlation, and volatility. The episode, recorded on June 13, highlights how the S&P 500 has consistently shown upward momentum, albeit with minimal daily gains. The discussion introduces the concept of the dispersion trade, which […]
OPEX Effect: June is Call-Bloated
In The OPEX Effect: June 2024, Brent Kochua and Jack Forehand discuss the impact of options expiration (OPEX) on market volatility and specific stocks, such as Nvidia. During periods of low market volatility, significant call positions expiring can lead to increased market movement and volatility. They mention the influence of JP Morgan’s collar positions on the […]
The Downside of Call Selling Funds
Last week, our founder Brent Kochuba attended the EQ Derivatives conference in Las Vegas. The conference attracted attendees from various backgrounds, including pension funds, sell-side firms, exchanges, and fund providers. One of the hottest topics over the two days of presentations was the proliferation of systematic call overwriting. The interest in this discussion was driven […]