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GammaEdge

@GammaEdges

May 26

We know the put-call ratio is popular on FinX, but we've got something better for you:

The GEX Ratio.

Here's exactly what it is, why it's superior to the Put/Call Ratio, and how you can use it starting today:

Traditional indicators only show you where the market's been.

The GEX Ratio reveals where it's headed by measuring the balance of call vs put gamma across all expirations.

Here's the formula:

GEX Ratio = Total Call Gamma ÷ Total Put Gamma

The GEX Ratio aggregates the gamma from all the calls and puts in any underlying.

And we know Gamma is sensitive to Price, Open Interest, AND Time [via option expirations].

Because of this, we get a much better "right now" metric than blunt tools like the PCR.

Read 14 tweets

GammaEdge

@GammaEdges

May 19

The secret to predicting SPX market direction isn't on your price chart.
It's hidden in the flow of SPX 0DTE options volume *throughout* the trading session.

Here's how to unlock this edge & spot trending vs choppy days BEFORE price confirms.

It's dead simple. Stick with me:

Most traders rely on lagging price indicators that tell you what already happened.

But what if you could see market sentiment BEFORE it shows up in price?

That's the power of analyzing SPX 0DTE options volume.

To do this, we've developed 3 essential volume tools for analyzing SPX 0DTE intraday volume:

∙ VOLM
∙ VOLU
∙ VOLD

Here's a little more on each before we get into actionable volume patterns you can leverage intraday:

Read 21 tweets

GammaEdge

@GammaEdges

Jan 20

The biggest mistake unprofitable $SPX 0DTE traders make is tracking too many levels.

This hurts decision-making, ruining long-term profitability.

To solve this, we've created a one dead-simple strategy/framework for our community.

Here's everything you need to know:

SPX 0DTE can be as complex or simple as you want to make it.

Sure, you can get hung up on $ exposure at every single strike while also trying to make sense of all the random "unusual option flow" throughout the session.

Or you can take a step back and simply ask yourself...

1. Is the structure (as defined by positioning of speculators) more bullish or bearish today?

2. What are the key levels, that if breached, validate or invalidate the structure?

3. What are the key upside and downside levels as defined by how speculators are positioned?

Read 33 tweets

GammaEdge

@GammaEdges

Aug 14, 2024

If you're not incorporating Options Structure Analysis into your pre-trade checklist for Stocks/ETFs, you're trading blindfolded!

This data provides us a wealth of insights.

Let's explore how Options Analysis can transform your trading decisions and boost your performance.👇

Quick Detour:

We just launched the Master’s Module of our flagship education course, The GammaEdge Framework.

This new module is specific to stock/ETF trading over a multi-day to multi-week timeframe.

• 2 days ago, we covered how to establish a directional thesis on the general market

• Yesterday, we covered how to utilize our scans to find actionable stocks in-line with the directional thesis established.

NOTE: Links to both threads are provided at the bottom of this one

Read 47 tweets

GammaEdge

@GammaEdges

Jul 6, 2024

It’s no secret today’s markets are driven by options activity.

As a trader using Technical Analysis, have you wondered how options market analysis could complement your system?

It can—and we've seen it benefit our members’ trading.

Here’s the 3-part framework we teach👇

Our framework at GammaEdge consists of 3 main pillars:

1⃣ Market Sentiment
2⃣ Market Trend
3⃣ Market Structure

Each pillar plays off the previous, and over the next section of tweets, we’ll lay out each one so you have a deep understanding:

1⃣Market Sentiment

It's our belief that markets are driven by OTM call & OTM put speculation.

Using options market analysis, we seek to understand who is winning the battle between call and put speculators above and below the spot price.

This then forms our directional bias.

Read 43 tweets

GammaEdge

@GammaEdges

Jul 4, 2024

Ever noticed sharp pullbacks when trading $SPX #0DTE after moving through large gamma strikes (e.g., +GEX)?

Curious why this happens?

Here are our thoughts! 👇

Below is a visualization of $SPX #0DTE from 07/03/24.

This example illustrates the 'gamma profile' of a #0DTE structure, with the largest gamma strike (+GEX) clearly at 5525.

For background, +GEX represents the strike with substantial short-term OTM call bets from traders.

Without further upside OTM call speculation beyond +GEX seen transact intraday, we tend to see monetization as we push through the +GEX.

Read 10 tweets

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