Some of the most notable and least understood being the ability to see trade flags.
A thread on cross trades and potential research, for those curious.
Let’s talk about the mythical cross trade and see if we can deduce anything from it.
Last week, the team at UW released a dive into floor trades, so naturally that got me thinking.
Dec 2, 2021 • 16 tweets • 3 min read
Gamma season is always in.
But when is gamma season bullish or bearish?
Let's talk about the gamma flip, and what that means for the markets, along with individual stocks. (1/x)
But first, we need to talk about an assumption of gamma exposure.
It is assumed, that MM's are always long calls and short puts in a positive gamma market. This means that investors are selling OTM calls and buying OTM puts. (2/x)
Nov 24, 2021 • 16 tweets • 3 min read
Gamma is a term a lot of people know about, but not a lot of people know what it does.
Let's talk about gamma pinning, and start breaking down this second order greek.
A thread (1/x)
To start, we need to know what pin risk is.
Pin risk emerges over options selling, specifically when the contracts are at or near expiration. Let's say stock XYZ is trading at $100.75, with expirations that day at $97.5, $100, and $102.5, and high OI on the $100 and $102.5 (2/x)
Nov 8, 2021 • 18 tweets • 4 min read
What is the difference between a straddle and a strangle? Aren't they the same thing?
Yes, but no, but also maybe.
Read below to find out, with visuals from the @unusual_whales Options Profit Calculator
A thread (1/?)
Both straddles and strangles allow for an investor to profit off of significant movements in the price of the underlying, and the profit % is based on the magnitude of the move. (2/?)
Feb 16, 2021 • 16 tweets • 4 min read
The meme stock chronicles part 2: What do it meme?
Grab your popcorn and have a read.
Also, no math, I still don't have my keyboard.
(2/?) Hilarity and celebrity endorsement:
Doge started a pump a couple months ago, where it climbed from less than $.01 to $.07, only to settle around the $.03 range for a while. It traded around that range for a few days, and then the Elon pump started.
Feb 10, 2021 • 19 tweets • 6 min read
What makes a meme stock a meme stock? Let's find out.
A short-ish (maybe not?) thread. (1/?)
(2/?) First, what makes something likely to meme? In @goodalexander ‘s video on his GAMSI index, he describes that index adds, short squeezes, and gamma stampedes (gama squeezes) are partial catalysts to make something meme.