When volatility is primed to expand, the right flow signal can turn a directional thesis into a highly asymmetric trade. On July 9, Tesla (TSLA) opened above a key SpotGamma support level while Compass and Equity Hub pointed to upside potential and increasing volatility if price continued higher.
After holding the $390 Hedge Wall, HIRO flagged a shift from slightly negative to positive delta flow as traders began buying calls and selling puts. Market makers began buying stock to hedge, helping accelerate TSLA higher.
Through strategic scaling out at the $400 Key Gamma Strike and $405 level, then holding a final runner until flow weakened, the trade produced reward-to-risk outcomes of 7:1, 12:1, and 13:1 successively.
Author: Doug Pless
Professional Trader & SpotGamma Content Contributor
| The Setup | The Tools | The Execution | The Payoff |
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Stock: Tesla (TSLA) Trade Type: Intraday long using stock shares Bias: Bullish continuation Volatility: Negative gamma with potential for acceleration higher Thesis: TSLA held above the $390 Hedge Wall while Compass showed cheap volatility and upside potential. A move toward the $410 High Volatility Point could accelerate if bullish flow developed. |
Compass • Lower-left quadrant signaled bullish potential • Low IV Rank indicated relatively cheap options Equity Hub • Prior close: $394.06 in negative gamma • Hedge Wall: $390 • Key Gamma Strike: $400 • High Volatility Point: $410 HIRO • Flow Alert flagged a bullish shift near 10:15 AM • Traders began buying calls and selling puts • Market makers bought stock to hedge |
Entry: Long at $393.25 just before 10:30 AM Trigger: Hold above $390 + HIRO shift from negative to positive delta Stop Loss: $1 Targets: • $400 Key Gamma Strike • $405 liquidity • $410 High Volatility Point Exit: Final runner closed at $406.40 as bullish flow faded |
Reward/Risk: • 7:1 at first scale-out • 12:1 at second scale-out • 13:1 on final runner Result: Gamma structure identified the upside path, HIRO confirmed the move, and flow exhaustion provided the exit signal. |
- Compass surfaced TSLA as a bullish candidate, combining upside potential with relatively cheap volatility.
- The $390 Hedge Wall provided the structural support, while Equity Hub showed negative gamma to the upside which suggested a move higher could accelerate.
- HIRO confirmed the trade in real time, showing traders buying calls and selling puts as market makers bought stock.
- Scaling at $400 and $405 while holding a runner produced up to 13:1 reward-to-risk, with fading flow signaling the final exit.
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