How We Nailed the Volatile Markets Last Week—And How You Can Too

The past week has been a roller coaster for the stock market, with moves being driven by dangerous market positioning, and not macro narratives.

This highlights how critical it is to stay in-the-know by monitoring options flows.

At SpotGamma, our insights and analysis helped traders navigate these volatile times with precision, and we want to share exactly how we did it.

But first, here’s a special offer: Get 50% off your first month when you subscribe to SpotGamma.

Our August 1st Note identified SPX 5,515-5,500 as a crucial support level, with a clear directive:

If the 5,500 level broke, we would switch to a "risk-off" stance, targeting a test of 5,400.

The SPX broke 5,500 that day, declining -1.6% to a low of 5,410.

The Headline From Our August 2nd Note:

"...we see no reason to hold long stocks and/or be short vol. This is a nasty setup, and an environment wherein we try to protect capital.”

The S&P500 subsequently declined -4%, with the VIX index making multi-year highs.

As the market reeled from huge price shifts on August 5th, we pinpointed the unwinding of flows as a key factor exacerbating US stock selling:

"...things are likely worse then they seem because of these positional flows. "Positional" flows being forced unwinds of trades that produced things like record low correlation.

Our takeaway here is that there are a lot of hyperbolic "world's end" statements flying around, but we are not yet ready to head into our bunker."

With the market still on edge into August 6th, we clearly identified 5,315 as the critical "line in the sand" for a bullish stance. Only a close above 5,315 level would trigger a "risk-on" move, with price action remaining unstable below that level.

Subsequently, on both 8/6 & 8/7 there were violent rejections from that 5,315 level, leaving many shaking their heads...

We've unlocked access to today’s Founder’s Note FREE, so you can found out why: “We may see a fairly quick lift into 5,400, but that level is where we are likely to catch some positive gamma resistance (which leads to "pinning"), and run out of vanna-fuel (i.e. IV's stop their rapid decline).”

Our insights didn’t just benefit our members—they caught the attention of major media outlets too:

- Reuters: We were quoted on the record intraday jump in the Wall Street fear gauge as stocks tumbled. Read the article.

- Bloomberg: (BN) Volatility Pros Say Record VIX Surge on Monday Was a Head Fake. Read here.

- Bloomberg: Bloomberg highlighted our analysis in "Options Market Signals More Caution After S&P Rout: Taking Stock". {Terminal: NSN SHWCQUT0AFB4 }

Missed our live sessions? Here’s a quick recap:

- August 2: WARNING: When Is it Safe to Buy the Dip? Watch it here.

- August 5: Special 10AM ET Member Market Analysis with Brent & Imran: Watch it here.

- August 5: Live Member Q&A session. Watch it here.

- August 5: TastyTrade Live Market Recap with Victor Jones. Watch it here.

In volatile markets, knowledge is power, and when trading you need to know the risks before they happen...

...and there were clear signs things would inevitably break!

SpotGamma’s unique insights and data-driven analysis give you the edge to make informed trading decisions, whether the market is soaring or plummeting.

Ready to be in-the-know with the options flows?

Join SpotGamma today and get 50% off your first month. 

Don’t miss out—this is your chance to access the same tools and insights that 

helped our members navigate one of the most challenging weeks in the market.

Join our community of successful investors and gain the edge you need in today's volatile market. Subscribe now and start making smarter, more profitable trades.