Wednesday 5/27 was a great example of how the Volatility Trigger can be a key level in trading. The concept of the volatility trigger is that when the market moves below the Trigger, options dealers are short gamma. This may mean that they start to sell futures as the market moves lower, and but futures […]
Our friends at ZoneTraderPro have a great trade review from Friday 5/22, where the incorporate SpotGamma levels into their unique ES futures trading signals and plan.
Today we want to provide an example of how we use the gamma data to setup a trade. Here we are using the SPX options data but using SPY to express our viewpoint that the SPX will stick to the 2800 area today. Note: This is a very basic trade and meant to convey general […]