Good Morning,

We are working through another red day in the market as I type this. Markets really aren’t liking the negative news cycle based around geo-politics. Years seem to happen in days. A lot can play out over the weekend. I am not planning on carrying any kind of contracts into the weekend just because of how quick things can change.

Let’s take a look at our recurring segment “Whale Watching” and see what Wall Street Whales are buying today:

Interesting flows came in on ADMA this morning. They are a volatile biotech name that is up substantially this morning. This is a huge directional bet for this kind of stock. It’s an interesting one to monitor. I will say, Biotech is generally not the space I play in. There’s room for huge reward there, but it has just never been my strength. Nonetheless, this is a notable flow.

I realize this update is coming to you a little later in the day. Unfortunately, I had some meetings on Wall Street in NYC and couldn’t get an update out to you guys until now. Obviously, negative gamma is still stacked up pretty heavy. The playbook has kind of been the same.

I was able to do a very brief trade on the gamma push below $640 this morning. I was pretty distracted so sized small and exited quick, but the gamma map continues to tell us how to trade and the direction the market is heading.

Negative gamma is still stacked very heavy until $635. I continue to be short term bearish on SPY. That being said, I expect a shift in the structure at sometime next week in anticipation of a bounce. I could be totally wrong and a bit early on this thought process but I expect a relief bounce soon enough.

I want to see the shift in the Gamma exposure before I shift long, though. I am out of the market for the weekend with these positions. I will wait to digest the events of the weekend and how GEX repositions Monday morning to dictate how we trade the week ahead.

Sorry for the briefness of today’s letter. I’ve got boots on the ground at Wall Street and will report back with more next week.

I am here working on tools for all of you. I can only help you so much via email, but if I can get you the tools I use we can really make some trades together.

Have a great weekend.

I’ll catch you Monday morning!

-Caleb