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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

GammaEdge

@GammaEdges

May 4, 2024

We've taken the role that the dealers play in the market, specific to how they utilize the option Greeks & simplified the concepts into a relatable analogy:

Driving a car. 🚗

If you're easily confused about complex options terms & dealer dynamics, this thread is for you🧵

1/ Like using different inputs to the gas, brakes, and steering wheel based on traffic and road conditions, dealers use 'the Greeks' - delta, gamma, charm, and vanna - to navigate the market and manage risk.

Let's dive deeper into how these play out in real-world trading 👇

2/ As a refresher, dealers are not in the business of making money from predicting price moments.

Their role is to provide liquidity to the markets by facilitating transactions.

Therefore, they are focused on eliminating the directional risk within their portfolio.

Read 23 tweets

GammaEdge

@GammaEdges

Apr 20, 2024

A prevalent misconception is viewing +GEX as a "magnet" that attracts price.

It's more like a repellant—pushing price away until it's decisively overtaken. This is why it's a good strike to at least take partial profits at.

Here's why: a 🧵 ...

At the core of our analysis, we view options primarily as tools for speculation, not hedging.

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

Underneath, this level repels price due to the nature of 'moneyness'.

1/ Remember: Moneyness Matters.

Call options opened above spot price are OTM and have a delta of less than 0.5.

Put options opened below spot price are also OTM and have a delta of less than -0.5.

Read 17 tweets

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