Doug is a full time trader from the US focusing on futures and equities. Reached him on twitter! As we have discussed previously, many traders open bullish option positions early in the week with short-term options that expire at the end of week. As traders buy calls and sell puts, market makers take the opposite […]
Market Analysis
Trader David Blake & ES “Unicorn Levels”
This post is courtesy of David Blake, a full time trader from the UK. He can be reached on Twitter. I always have loved the London open and that harks back to my forex trading days. ETH (extended trading hours) often has a simpler rhythm to it, keep an eye of what the European markets […]
SpotGamma Report for: 07/13/2021 AM
Daily Note: Futures are flat overnight holding 4377. We see little change in gamma levels, with 4350-4400 the main range into Fridays OPEX. With that our model forecasts a very small max move today of 76bps/33pts. 4384 shows as a very large Combo Strike which may be a decent “fair value”/pivot reference for today. As […]
S&P500 Is Less Volatile Into Expiration
In our daily subscriber reports we often talk about the “Options Expiration [OPEX] Cycle” and its influence on the S&P500. This cycle starts on the third Friday of each month, wherein its typical to have >20% of total S&P500 options* expiring. Our view is that options market maker hedging begins to concentrate around the strikes […]
AMZN Topping Out?
This morning we highlighted that positive news and a huge number of call options traded likely gamma squeezed AMZN up over $3700. However our EquityHub data showed that most of the gamma in Amazon was tied to the $3600 strike which indicates that at $3700 (opening prices on 7/7) the stock is likely overextended.
New Highs Brings Out the Options Sellers
SpotGamma collects raw data which sheds light on the previous weeks options transactions. This past weeks data was quite interesting in light of several of the developments which took place last week. Below we’ve taken the total number of contracts bought to open, netted against contracts sold to open. Here we are only showing large […]
WISH Options Gamma Squeeze Setup
Today on YouTube live (sub here) we discussed the gamma squeeze setup we see in WISH, which is a popular stock on r/wallstreetbets.
Nomura Options Gamma July Expiration
Nomura Warns Of Market “Reversal Risk” As FedSpeak Walks Back ‘Bullard Bomb’ BY TYLER DURDEN MONDAY, JUN 21, 2021 – 09:59 AM After last week’s market fireworks on the Fed’s “hawkish surprise” and Jim Bullard’s “you think that’s hawkish, hold my beer” moment on Friday morning, which has many market participants screaming “policy error”, Nomura’s […]
Quad Witching Gamma Pinning
What’s Behind Today’s Crazy Market Move BY TYLER DURDENTHURSDAY, JUN 17, 2021 – 05:44 PM One day after the shockingly hawkish Fed admitted that inflation is not, in fact, transitory as so many clueless propaganda hacks would want everyone to believe, and pulled up the liftoff date to early/mid-2023 when it now envisions not one but two rate hikes, […]
Quad-Witch Quandary: How Will Friday’s $2 Trillion Gamma Expiration Impact Markets
BY TYLER DURDENMONDAY, JUN 14, 2021 – 03:24 PM Last week, when discussing the bizarre summer doldrums in the market which pushed the VIX to the lowest level since the onset of the covid pandemic, we said that this period of abnormal market quiet is likely to last until this Friday’ quad-witch, when a massive amount of […]