One of our most requested sessions returns. Learn how to spot where dealers are trapped or in control — and how Equity Hub & the Synthetic OI lens reveals hidden positioning that drives price, before it shows up on your chart.
What You’ll Learn:
Introduction to Synthetic Open Interest and Equity Hub Overview (00:00:01 – 00:02:27)
A beginner-friendly session introducing EquityHub and the synthetic open interest (OI) model, emphasizing why options matter and setting expectations for what will be covered, including put/call impacts and key levels.
Explosive Growth in Options Volume and Importance of Position Analysis (00:02:27 – 00:04:32)
Discussion on the surge in options volume (up 150% since 2019) versus stock volume (30% increase), highlighting retail participation and how position analysis reveals existing market risks that market makers hedge against.
What is Synthetic Open Interest and Its Empirical Basis (00:04:32 – 00:09:26)
Synthetic OI isolates market makers’ positions with high-fidelity data across multiple exchanges; it is empirical, not inferred, providing accurate strike-by-strike, expiry-by-expiry positioning that underpins precise trading models.
Gamma’s Role in Realized Volatility and Market Behavior (00:12:21 – 00:15:05)
Explanation of gamma sensitivity near at-the-money strikes influencing realized volatility; positive gamma compresses volatility while negative gamma expands it, directly impacting price movement and hedging behavior.
Case Studies on Major Tickers: Nvidia, Microsoft, and Palantir (00:16:00 – 00:29:12)
Detailed analysis of how gamma levels and synthetic OI shaped price action in Nvidia’s consolidation and breakout, Microsoft’s resistance and support around key strikes, and Palantir’s negative gamma-driven volatility and price swings.
Practical Applications of Synthetic OI for Trading Strategy and Market Insight (00:30:00 – 01:01:57)
Insights on reading key gamma strikes, volatility points, and hedging flows for various stocks and indices; how to use EquityHub tools like Trace for intraday updates; and answering member questions regarding model nuances, volatility interpretation, and strategy considerations.
