The following is a guest post from Doug Pless. At SpotGamma, our community uses the SpotGamma AM Founder’s Note when preparing to trade index products such as the QQQ (Nasdaq 100 ETF). Specific levels to note include the following: Volatility Trigger, SpotGamma Absolute Gamma Strike, Put Wall, and Call Wall. Additional levels are the CP […]
Market Analysis
Combining SG Levels With HIRO Flow to Find Support
Here we should how combining live options information from HIRO can help to confirm key Put Wall support. Combining large gamma levels with increasing, positive deltas, has shown to be a powerful combination for finding support in markets. SpotGamma recorded and posted this video around 11:30 EST. The market rallied nearly 1% after this was […]
How Options Expiration Affects Futures Trading: SpotGamma on NinjaTrader’s “Traders Workshop”
Brent, Founder of SpotGamma, breaks down how options gamma & delta flows can impact the movement of equity futures. This is a great tutorial for those new to these options concepts.
SpotGamma on “The Options Trading” Podcast
SpotGamma Founder, Brent Kochuba, was on “The Options Trading” podcast on Friday to talk about Call Walls, and how we watch options levels confirm price action. This conversation took place during a week wherein our proprietary Call Wall metric was strongly tested, but held strong. Listen here:
Put Sellers Learning Bad Habits
As of July 22nd the S&P500 is down 15% YTD, after being down ~25% on the June lows. Despite this poor performance, the VIX has remained subdued having peaked on January 24th after a vicious OPEX-induced selloff. This means that the VIX did not break to new highs despite the Russian invasion of Ukraine, blistering […]
Using EquityHub to Find Support During Crashes
Here we show how EquityHub plots out gamma curves, which could be used to find areas of support or resistance during extreme volatility. In this case WMT declined 10% after earnings – a price move which brought the stock to a “zero gamma” zone. This indicated that options market maker hedging may tail sharply off, […]
Trade Analysis: NVDA (July 20, 2022)
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, Key Delta Strike, and other metrics for each stock and compare the values with the previous […]
Gamma Levels Can Reveal Huge Forces Driving The Nasdaq
The following is a guest post courtesy of Michael Kramer of Mott Capital Management. The equity markets have had sharp drawdowns and extremely high volatility in 2022. While this dynamic has created a difficult backdrop for traders, the options market is playing a big role during these tricky times and SpotGamma indicators may provide an […]
Are Stocks Set for Another 40% Decline?
Join us for a fascinating conversation with Kirk Chisholm, Wealth Manager and Principal of the Innovative Advisory Group. Kirk’s view is that the market is still quite overvalued, and has been holding a large cash position for his clients as a result.
Implied Volatility & Equity Direction: The Vanna Trade
Brent, Founder of SpotGamma, discusses how changes in implied volatility can lead to changes in stock direction. Implied volatility changes impact the hedge ratio, or delta, of an option. Traders can measure this impact with an option greek known as “vanna”.