Good Morning! When you look at yesterday's candlestick, and at times price action, you would think it was a fairly calm reversal day after hot retail sales data, but the 0DTE and intraday action was a lot more interesting.
It painted the picture of an institutional battle, with gradual bullish trends countered by sharp slides in price. The bull was very savvy in the 0DTE space, buying loads of 4130 calls and selling ITM put spreads while selling 4150 calls. Then as we reached "Dealer o'clock" (2pm)
The bull rushed the 4130 price point to get the negative charm and negative gamma, recruiting the mercenary option MMs to their side. A few futile sell moments occurred but the bull was victorious, finishing at the sold call 0DTE level of 4150.
I chronicled this in my 0DTE updates in my sub page on my discord: discord.gg/QkJKwwd2sv it was fun to watch. But now we are looking at March, and there are some oddities in the option space. #volland is showing a clear $SPX bullish trend,
But $SPY, $AMZN, $AAPL, $QQQ are all very bearish. Even $SPX has some gamma rundown past 4000 that can create a big downside move. Some high-profile traders are looking for that move too. If bullish, I would certainly hedge this month, but there is some strong charm in $SPX
and 0DTE continues to profile as bullish. So it may be a tense month with bulls and bears getting frustrated. I would position hedged to the downside with some short gamma flies and condors that lean to the upside but not too much, especially with downside catalysts possible.
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