When market maker positioning begins to shift, quiet markets can quickly transform into powerful trending environments. On April 9th, SpotGamma’s TRACE heatmap and HIRO indicator identified a changing setup unfold in the S&P 500.
After opening in a positive gamma environment and trading in a narrow range, a large negative gamma zone emerged around SPX 6830 while options flow turned decisively bullish. As traders bought calls and sold puts, market makers were forced to buy ES futures to hedge — creating a clear path toward a developing Gamma target.
By combining TRACE, HIRO, and key levels, SpotGamma contributor Doug Pless leveraged a defined-risk entry, a quantified target, and a clear exit signal — trading a 0DTE ES call option for over 400% profit.
Author: Doug Pless
Professional Trader & SpotGamma Content Contributor
| The Setup | The Tools | The Execution | The Payoff |
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Instrument: ES Futures Options (S&P 500) Trade Type: Intraday long using 0DTE call options Bias: Neutral at the open, bullish after flow confirmation Volatility: Positive gamma at the open suggested lower volatility, but developing negative gamma indicated trend potential later in the session Thesis: A growing negative gamma zone at SPX 6830 combined with bullish options flow could drive price higher as market makers hedged delta exposure. |
TRACE Gamma Heat Map • Positive gamma at the open indicated a contained market • Large negative gamma strike formed at SPX 6830 • 6830 emerged as a 99th percentile gamma target • Negative gamma zone strengthened throughout the day HIRO • Traders began buying calls around 9:50 AM • Put buying transitioned into put selling around 10:30 AM • Hero Flow Alert triggered around 10:40 AM • Confirmed strong bullish hedging flow SpotGamma Key Levels • SPY 675 Absolute Gamma Strike • SPY 674 Volatility Trigger • SPX 6830 Negative Gamma Target (shown in TRACE) |
Entry: Bought April 9 0DTE ES 6820 Calls for $8.10 at approximately 10:45 AM Trigger: ES reversed higher from the SPY 674 Volatility Trigger as traders bought calls and sold puts Target: SPX 6830 negative gamma strike (equivalent to approximately ES 6870) Confirmation: Rising HIRO signal + expanding negative gamma zone on TRACE Exit: Sold calls around 2:00 PM after options flow began to stall |
Entry Price: $8.10 Exit Price: $41.00 Return: +406% Reward/Risk Ratio: 5:1 Result: TRACE identified the target, HIRO confirmed the move, and options flow exhaustion signaled the exit — creating a high-conviction intraday trade from start to finish. |
- TRACE identified SPX 6830 as a developing Gamma magnet, providing a clear upside target before the move accelerated.
- The Volatility Trigger acted as support, creating a precise entry point for the reversal higher.
- HIRO confirmed bullish positioning, showing traders buying calls and selling puts as market makers bought ES futures.
- The trade turned $8.10 into $41.00, delivering a 406% gain before options flow signaled exhaustion.
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