The following is an automated transcript of the video above, for your convenience. Please pardon any typos. Volatility Divergence Between Bonds and Equities Today we wanted to talk about volatility, and specifically the volatility divergence between bonds and equities. So on your screen we have the MOVE index, which is considered to be the bond […]
Market Analysis
Elon Buys 9% of TWTR & Calls Buyers Rush In
Elon Musk bought 9% of TWTR shares which spiked the stock over 20%. We ran our HIRO (hedging impact of real time options) indicator live as the market open (here), and explained how TWTR “out kicked its gamma coverage”. Below is our end of day recap, showing how call trading may have driven TWTR prices.
Battle of the Memes
Update: GME officially announced a 4:1 stock split effective 7/21. When it comes to meme stocks, AMC and GameStop are at the forefront. On the face of it, they are fairly similar. Both have ardent supporters, similar market caps (~$12bn) and shaky fundamentals. Traders hold roughly 20% of both GME & AMC’s free float short […]
Massive S&P options trade may have roiled U.S. stocks on Thursday
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 […]
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 […]