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.

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:

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.

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 👇

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'.

🌇Good Afternoon Traders. Time to go around the horn and see what the structure on the #Mag7 stocks looks like for this coming week:

Before we get going on single stock structure, we should review the Market Trend Model, which is our tool to gauge trend/momentum in the market. We can clearly see that all trends are lower, with significant selling seen throughout the week. Caution is certainly warranted here, and we need to see improvement in this structure before any kind of conviction to the upside.

Additionally, let's take a quick look at $SPX. You'll notice the amount of red in the dashboard. This indicates that the bears are out in full force, dominating both above and below spot price. Again, caution is warranted, and we need to see significant improvement in structure before any kind of conviction to the upside.
$AAPL -> What was once living below its transition zone, now is not. Relatively strong end to last week in the face of prevailing general market headwinds (see $SPX and MTM post above). Price is now currently above transition zone and for the next month with call speculators targeting $180 being both +GEX and COI. Additionally, when looking at the GEX ratio, which is a measure of speculation, we can see that this has increased last week.

⚠️$SPX #0DTE Traders⚠️

We've emphasized our key levels a lot lately...

→ ZeroGEX
→ PTrans
→ +GEX

Why is that?

The market respects them more days than not...and they aren't random either. They're all derived from market structure.

Nothing fancy, just actionable insights👇 1/ Building on our focus, GammaEdge has dedicated significant time and resources to crafting visualizations of these key levels.

Today, we're sharing a behind-the-scenes look at a few of the most powerful commands from our discord charting bots available to $SPX #0DTE Traders.

Most services out there like to complicate the market and their "signals" are a black box.

We do the opposite for you at GammaEdge.

If you find yourself nailing your $SPX #0DTE entries, but struggle with when to take profits, read this: 👇 We have straightforward targets for $SPX 0DTE trading.

We use to 2 levels:

1. Positive Gamma Exposure (+GEX)
2. Call Open Interest (COI)

*Bonus levels are quarter, half, or whole numbers (e.g., 4925/50/75, or 5000). Why? B/c price likes liquidity, which these strikes offer.

The 4 Key Levels You Need To Know to Profitably Trade $SPX 0DTE:

1. ZeroGEX
2. Positive/Negative Transition
3. Positive/Negative Gamma Exposure (+/- GEX)
4. Put/Call Open Interest (POI/COI)

Let's break down why each one is important, & how to trade these levels daily: 1. ZeroGEX is where dealer exposure is balanced in the market.

No bias in either direction.

Above this level we can be short term bullish.

Below this level wee can be short term bearish.

The 10 golden rules of trading $SPX intraday (that will change your performance forever when implemented correctly): 1. Only focus on critical levels.

We focus on 4 main areas when trading $SPX intraday:

1. ZeroGEX
2. Positive/Negative Transition
3. Positive/Negative Gamma Exposure (+/- GEX)
4. Put/Call Open Interest (POI/COI)

Keep it simple.

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

This hurts a trader's decision, ruining long term profitability.

To solve this, we teach our members one specific strategy that can be implemented daily.

Here's everything you need to know: Our $SPX #0DTE strategy at GammaEdge has 6 main levels to focus on.

After extensive backtesting (and now forward testing), we're confident this strategy has the ability to change the way you trade.

1/ We often see comments that each monthly options expiry, esp the #SPX AM, will be the "mother of all volatility".

"Trillions of notional $ expiries will trigger an avalanche of selling."

It does not generally NOT the outcome - ever wonder why?

We have an idea:

A 🧵: 2/ ...

We believe that options Dealers do not warehouse risk.

Sure, they may have *some* risk, but overall, it's within the limits established by their organization and enforced by their risk desk.

How would YOU minimize your risk exposure?

Eliminate the uncertainty:

For those following the #SPX early-morning settlement saga and "the market is going to collapse due to all the deltas coming off", here is another perspective to ponder:

👉 There's no rational reason to have fireworks.

A few thoughts on the setup into the open...

A 🧵 : 1/ The following graphic helps us to understand how to visualize "if-then" outcomes.

It's not a perfect model, but we believe that concept is valid.

The basic premise is that the market knows where the hockey puck is going and is mostly hedged.

Here's why:

Are you looking to connect with new traders, master a new edge, or become a better trader overall?

Our first Public Open Mic is the perfect place to do so, which is open for ANYONE this coming Wednesday at 8PM EST.

More info on the utility behind our 2x Weekly Open Mics: One of our main missions at GammaEdge is to empower traders with the right information to help them make better trading decisions.

We do this by hosting Open Mic sessions for members, where they can...

"The trend is your friend."

This a common phrase most have heard but many traders have no idea how to catch a trend consistently.

GammaEdge's Market Trend Model (MTM) makes this easy and is something you can implement tomorrow!

Here's how: 1/ Every transaction in the market produces an uptick (buying) or a downtick (selling).

One way to measure buying and selling is through the Cumulative Tick, the backbone of our MTM.

Before going too far down the rabbit hole, here is a primer on the CT:

Delta and Charm are often tossed around Twitter but never in an actionable way.

The mechanics of Delta and Charm create "support" and "resistance" zones that can be utilized to trade against.

And lucky for you, we've created tools to help you visualize this.

Time for a 🧵: 1/ Before we get going, here’s what you’ll have mastered by the end of this thread:

· Importance of an option's Delta and Moneyness
· How to identify a dominant Delta and Charm strike
· Why ITM dominant Delta and Charm strikes are strong

Let's get to work! 🛠️ ✍️

Are you looking for a trading strategy that:

✅ has a quantifiable edge?
✅ leverages gamma exposure?
✅ is supported by backtesting?

You're in luck!

The GammaEdge GEX Ratio (GR) strategy provides impressive results as we forward-test and further refine.

Time for a 🧵: 1/ By the end of this, you should have a grasp on the following:

· What is Gamma Exposure (GEX)?
· What is the GammaEdge GEX Ratio (GR)?
· How to make GR ACTIONABLE TODAY.

Let's get to work! 🛠️ ✍️

@dampedspring It may be a bit more than $3B Andy.

We're showing the following structure into the end-of week:

charts.gammaedge.us/charm_oi_3d_SP…

What we think matters on Friday is that ITM call component, as it will continue to push flows upward. @dampedspring ... but into Friday, there is a significant net positive flow that could capture more ITM puts, forcing them to OTM and positive flow, as well as capturing more ITM calls.

charts.gammaedge.us/net_charm_oi_3…

18/ The "if-then" for COTMP is along the lines of:

✍️IF we push below $30.65 in $XLF, we'll watch for a potential upside reversal where we could enter long.

Here are the "if-thens" summarized to make sure you're tracking: 19/

✍️ IF GEXRatio moves up, we'll look at upside opportunities.
✍️ IF we see OTM call delta-OI begin to appear, this may be a change in sentiment to the upside.
✍️ IF we see price push above $32, it may continue as traders lock in ITM put gains.
✍️IF we break above $32, ...

We expect a character shift in the $SPX after this week.

Option charm, which gives us sensitivities of the option complex to change in option delta due to time, can be a useful tool to visualize the potential of these changes, or lack thereof.

A 🧵 : 1/ We wrote about option charm here:

https://twitter.com/GammaEdges/status/1629951031013679104

The power of option charm can be significant in developing your weekly strategy.

Curious about how to use it to benefit your trading?

Here's how you can in 30 minutes or less: 1/ Charm is one of the options "greeks" and there tends to be an aura of mystery on what it is and how to apply it to trading.

There is nothing mysterious about it, and if you embrace charm, it may better prepare you for possible changes in markets.