SpotGamma was quoted in an Reuter’s article today concerning the 3/31 JPM Collar Strategy. The way the trade is structured means when the market starts to fall, options dealers – typically big financial institutions who facilitate trading but seek to remain market neutral – would have been forced to sell an increasing number of stock […]
Market Analysis
The TLT’s Recent Plunge May Be Over
The following is a guest post courtesy of Michael Kramer of Mott Capital Management. Bond yields have soared in 2022, sending ETFs like the iShares 20+ Year Treasury Bond ETF (TLT) lower by around 10%, but almost 25% off its 2020 highs. The ETF now comes to a critical juncture, signaling rates pushing significantly higher […]
Using HIRO + SpotGamma Levels For ES / SPY Trading
Here we provide a great example of how large options-based support levels line up with our intraday options trading algo called HIRO. The SpotGamma HIRO Indicator measures the hedging impact of all options trades in real time. When SpotGamma HIRO shows that options flows confirm support and resistance levels, it can be a powerful combination.
Trading Stocks With SpotGamma and Bookmap HIRO
The following is a guest post from Doug Pless. When I plan to trade stocks for the day, I begin my morning preparation by opening my watchlist in Equity Hub. I look at the Key Gamma Strike, Hedge Wall, and other metrics and compare the values with the previous values for the last five days. […]
Identifying Opportunities with HIRO
Trader Doug Pless recently played a common setup we see in the HIRO data. HIRO can be quite valuable in helping traders identify a turn in trend, not only on declines but also on strong rallies. Below is a chart of MSFT from Friday, and you can see that the stock (black line) traded sharply […]
There Are Times When Nothing Is Happening
The goal of HIRO is to alert users as to when options order flow may be impacting a stocks price. Equally important is knowing when options are not involved! A member asked us today about NVDA’s flow, and our response was “there’s nothing going on!”. This can be seen by the fact that the HIRO […]
Using HIRO with SPY to Confirm Reversals
This morning we had a volatile opening, with SPY ripping ~$2 higher before reversing sharply (black line). The HIRO signal (purple) did not move up along with SPY on that opening, suggesting the options market wasn’t “buying” the move. After that opening rip, SPY sold sharply lower to $443. It was on those lows that […]
The March ’22 Option-less Rally
At the beginning of March with the market near ’22 lows, SpotGamma flagged two catalysts that could spark a rally. The first was the March 16th FOMC and the second was a large, put heavy OPEX (go here to listen to our forecast posted on 3/11/22). Entering into this time frame, our analyses suggested options […]
Barclays Suspends VXX & OIL Issuance
Because of this OIL/VXX may start trading significantly above their asset based IV price. Likely will become very difficult to short these products & without shares to short Authorized Participants can’t do arbitrage operations they typical run to drive price down to IV Price. https://t.co/1lacpxhnVf — Vance Harwood (@6_Figure_Invest) March 14, 2022 From BusinessWire: Barclays […]
Brent Calls for Market Rally Ahead of March OPEX on the Contrarian Investor Podcast
Brent, Founder of SpotGamma, was on the Contrarian Investor Podcast this week. There he discussed how options hedging may impact stock prices, and why he thinks markets may rally into next weeks options expiration (3/18/22). For full audio-only, go here to listen.