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Nov 3 • 4 tweets • 3 min read
📢 @Tradytics & Wizard of Ops announce a bundle discount!
Use code TRADYVOL35 on both platforms (#Volland & Tradytics premium) for $35 off the combined subscription.
Volland: vol.land
Tradytics: tradytics.com
This partnership made sense. We are two data-backed platforms that bring edge to investors. #volland is a novel, accurate approach to dealer hedging, @tradytics has a whole menu of indicators.
In other news, #volland will be releasing a summary page doing all the gamma, vanna, and charm dealer notional calculations for you! This will be next week.
Also starting next week on wizofops.com, I will be releasing free #volland webinars explaining the tool's edge and how to use it. This was based on your feedback, so please visit!

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More from @WizOfOps

The Wizard Of Ops Profile picture
Nov 4
Good Morning! An interesting day yesterday as a vanna spike at 3950 was pulled down from a very strong dollar. It was like a game of tug of war that the dollar sort of won. Macro bros still have a lot to say today with jobs data and rumored Chinese pivot regarding Covid.
Talking about a Chinese pivot first because it is easy. If that happens, I would expect a very strong bullish surge. It doesn't solve all of our problems here, but will produce a surge in demand. That surge will also hurt inflation, however. So it would be short term bullish..
But tougher long term economic impact as commodities increase in cost, energy prices increase, and worldwide demand increases. That can make inflation worse.

As for jobs, I was shocked to see in #volland that it was dramtically underhedged. The straddle price for today is $55,
Read 7 tweets
The Wizard Of Ops Profile picture
Nov 3
Good Morning! Saw quite a bit of chatter about how $VIX understood yesterday's move, but ultimately remember that VIX is a measure of premiums on $SPX. If dealers are fine between 3750 and 3950, there is no liquidity problem. Toss in disappearing event vol, and the $VIX is fine.
This is clearly shown in the premarket. $ES drops 20 points, and $VIX is up a normal .56 points. As I said, 3750 is a big number here; that's where all the hedging is this week and into March. If this premarket drop sees continuation, today could get ugly. Break 3700...
things get really ugly. It can also most certainly happen since macro bros are still reeling from JPow's presser. None of it surprised me at all except that JPow suggested that if something breaks, they have the tools to fix it. I hate to break this to you JPow...
Read 8 tweets
The Wizard Of Ops Profile picture
Nov 2
Good Morning! Today is FOMC day, where it seems everyone knows what is going to happen, yet are caught off guard by it anyway. how are dealers and customers positioned? Lets consult #volland.

The overall DAG in $SPY and $SPX is mixed, and have very little push except...
$SPY gets dicey below 376. On the upside in the short term we would see strength in $SPX past 3950. That seems to be the acceleration point, but also a major balance point for vanna. 3950 is the big number, and unless FOMC surprises would be my target for the week. #volland
The customer positioning is typical, with calls (primarily at 3950) and puts (between 3750-3850) bought, but ATM puts are sold in $SPX. The put #volland chart is shown below for the week. This is interesting, as it is a bet that premiums are too high for the movement we will see.
Read 4 tweets
The Wizard Of Ops Profile picture
Oct 25
Good Morning! Yesterday we got to 3800, and really didn't move from there. There was some back and forth, bit it appeared that 3800 was sort of a pin. There really wasn't anything to pin it there until the 0DTE option dealer positioning shook out.
Anyone following me for a while knows I have a script for following 0DTE flows similar to #volland. I mentioned in my free discord that 3800 was a clear magnet on the 0DTE, even though I was afraid of Chinese contagion. 0DTE has been the subject of debate on its true impact.
I believe it has profound consequences, as that option class has the highest vanna, charm, and gamma levels of any class based on its timing. With 40% of $SPX options traded daily as 0DTE, I believe it is a mix of hedge fund speculation (particularly on the '25' strikes)
Read 13 tweets
The Wizard Of Ops Profile picture
Oct 24
Good Morning! Friday was a face ripping rally, and as futures opened the market high-fived my 3800 target from unloading Oct. ITM puts. Once that happened there was a slow drip to flat. Overall I expect little movement this week, but MM net long options are dangerous.
As long as MMs are in control, net long options should be a steadying force. However with both puts and calls being sold, that puts dealers at extreme long vega, which means they need to be short vanna and they need to hedge by reducing their vega exposure.
This could be through short VX, or by finding buyers of vol out there. So far the only true hedging I can find is in March 2023. When will customers hedge the FOMC meeting? Midterms? Normal Nov. opex? The March hedging is robust, but has less gamma, vanna, and charm impact.
Read 6 tweets
The Wizard Of Ops Profile picture
Oct 17
Good Morning! Friday the market returned its gains from the CPI rip to that strong 3650 vanna magnet, but sold off towards the end. Last week I mentioned that we are destined for 3800 this week thanks to another huge put buy at that strike for Friday and the need to roll.
That to me is a higher target, as my trade for this week is a fly at 3700 with a bullish broken wing. 3800 is a large area of bought puts. When ITM puts are rolled, the deltas come up from -80 to -30 (hypothetically. These aren't real numbers). Dealers were hedged 80 futes short
but now they need only 30 short futes, so ITM put rolls result in a rally. The upside target is 3800, even though a roll would result in falling short of that strike (to buy the Nov. options). This is because the dealers would lead the market. Maybe some earnings would drag,
Read 4 tweets

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