Key Takeaway: On April 23, a trader or group unloaded 37,000 SPX call contracts in under 30 minutes — a massive move that helped wipe out billions in market value and trigger an 81-handle selloff. It looked bullish. It wasn’t. This was a synthetic short, a hidden bearish bet most traders misread completely. Why? Because […]
Market Analysis
Spot the Flow, Seize the Edge: 5 Options Signals Every Trader Should Be Watching
The Tariff Deadline (4/2) is looming, with big implications for your trading. This wildcard event could tip sector flows, shift hedging activity, and force institutions to adjust — fast. Yet this market catalyst comes with its own set of risks and opportunities. The difference comes down to how well you can see a setup before […]
March OPEX Effect: Put Maxed
In this episode of the OPEX Effect we discuss how the stock market turned right at February VIX expiration resulting in a 10% SPX market crash into this weeks massive March OPEX. Brent flags how put values are “maxed out” into OPEX, and why that dynamic combines with 5,500 – 5,565 as a major support […]
TSLA 420: A Temporary High (?) as Charm & Vanna Flows Work Against the Stock
TSLA has been on an incredible +50% move for the month following the 11/6 elections. SpotGamma wrote extensively about the very bullish setup we saw on 11/7 – a setup that was more bullish than general market expectations, and why we thought TSLA stock would reach previous all-time-highs of 400. Along that path, we called […]
TSLA Stock: Time for Ludicrous Mode?
One of the obvious beneficiaries of the Trump victory is Elon Musk, and TSLA. The day after Trump’s election, TSLA stock rose +12%. Traders are now pricing in even higher levels for TSLA, which has created a positive call skew. Call skews occur when traders start to price in a higher chance of upside (i.e. […]
SpotGamma for Swing Trading
You can use the information provided by SpotGamma’s TRACE tool to help you identify and execute swing trading strategies. For example, you can use the Gamma Exposure (GEX) view in TRACE to identify areas of potential price reversals. You can also use the Delta Pressure view to see where market maker hedging may be putting […]
The NVIDA Industrial Complex: 0DTE and Deteriorating Liquidity
In two recent media appearances, Brent Kochuba, Founder of SpotGamma, broke down his theory about how impactful NVDA short dated options are to the US stock market. Hint: very. First, this was discussed with Victor Jones of TasyTrade, and then with Jack Forehand of ExcessReturns. In recent market activity, we’ve seen significant movement in NVIDIA […]
SpotGamma on TraderTV Live
Brent, Founder of SpotGamma, joined trader TV live to talk about NVDA’s options driving the stock market. He also touched on the large upcoming September FOMC, VIX Expiration & Options Expiration.
The Dangers of Premium Selling Zero DTE ETFs
Investing in Zero Days to Expiration (Zero DTE) options strategies through exchange-traded funds (ETFs) has gained popularity in recent years, particularly for investors seeking to generate income through premium selling. These ETFs, such as the Defiance S&P 500 Enhanced Options Income ETF (JEPY), employ a strategy focused on selling put options with very short expiration […]
The OPEX Effect: August 2024 | Behind the Scenes of the Recent Market Volatility
In this episode of OPEX Effect, we dive into the recent market volatility and its connection to options flows. We discuss the sudden VIX spike to 65, examining the factors that led to this extreme event, including low liquidity, the unwinding of correlation trades, and the impact of zero-day options. We explore how the market […]
