Making Sense of A Rally In Silver Stocks
If traders were interested in a “weaponized gamma” type move, they would want to see an addition of call options at strikes >25 which would shift the SpotGamma Momentum indicator higher. The unique thing about buying an option is that it may induce a counterparty (who is short that option) to hedge their exposure in stock. Therefore many traders each purchasing a few hundred dollars of call options at the same time incentivizes options dealers to buy thousands of dollars in stock.
“The Great Silver Gamma Squeeze”
January 31, 2021
What To Monitor When Stocks and Metals Are Moving
• Where large options positions are located and the potential effect on the stock
• How much stock volatility may be induced due to options hedging
• The other metric which signals increased upward momentum would be a shift higher in the key gamma strike. This is the main strike level to which dealer hedging is tied, and so if that level moves to a higher SLV strike it implies dealer hedging will support a stock move up
Introducing Gold & Silver Hub
For the month of February, SpotGamma is making all silver and gold related stock options data free to access as a part of the Gold & Silver Hub.
PLUS, you can see a 5-day history of various options metrics in SLV and other silver and gold related stocks. For example, if you see that total call open interest (“Call Total”) steadily increased, there’s a strong implication of an increase in bullish bets.
SpotGamma Equity Hub for Powerful Options Gamma Data
Gold & Silver Hub is powered by SpotGamma’s proprietary searchable real-time index of over 3,500 stocks and ETFs (including GME, AMC, TSLA and more). With new features like the rolling 5-day stock position lookback and color coded charts and graphs, Equity Hub™ 2.0 is more powerful than ever before.
Access all 3,500+ stocks with Equity Hub™ as part of a five-day free trial subscription to SpotGamma Pro.