When stocks see strong options flow above key support levels, traders can capitalize on high-probability setups to achieve favorable outcomes. Meta (META) provided a clear example of this dynamic, as price stabilized at a critical SpotGamma key level and options activity confirmed bullish positioning.
After pulling back from highs immediately following earnings, Meta found support at the $660 Hedge Wall. As traders began buying calls and selling puts, the HIRO Indicator signaled a shift in market maker hedging that supported further upside.
By combining SpotGamma’s Compass, key levels, real-time flow indicator, and the Options Calculator, this trade was structured for a high probability of success — ultimately delivering $366 in profit over three days.
Author: Doug Pless
Professional Trader & SpotGamma Content Contributor
The Setup |
The Tools |
The Execution |
The Payoff |
|
• Stock: Meta Platforms (META) |
Compass • Flagged META in the lower-left quadrant (low IV rank + low risk-reversal rank) • Indicated cheap volatility with upside potential Equity Hub • Identified key support at the $660 Hedge Wall • Confirmed structural support after post-earnings pullback HIRO • Showed bullish flow confirmation: • Traders buying calls • Traders selling puts • Market makers hedged by buying stock, supporting price Options Calculator • Modeled trade structure and outcomes across expiration scenarios • Helped define risk and probability of profit |
• Entry: Sold two Feb 11 $657.50/$662.50 put spreads for $2.35 credit • Hedge: Bought one Feb 11 $630 put for $1.04 debit • Trigger: Price holding above $660 hedge wall with renewed call buying and put selling on HIRO • Structure: Defined-risk bullish position with hedge to reduce early downside exposure • Duration: 2 days |
• Result: $366 profit per trade unit • Outcome: META closed at $668.69 above the short put strike — spreads expired worthless for full profit • Edge: Support held + bullish flow + cheap volatility setup • Lesson: Combining SpotGamma levels with flow confirmation enables high-probability, risk-defined trades |
- Compass identified META as a bullish opportunity, with cheap volatility and favorable positioning.
- The $660 Hedge Wall acted as strong support, stabilizing price after the post-earnings pullback.
- HIRO confirmed bullish flow, showing traders buying calls and selling puts, forcing market makers to buy stock.
- A structured options trade delivered $366 profit, demonstrating how SpotGamma tools can guide high-probability setups.
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