Good Morning!

Last Friday’s analysis on SPY was absolutely spot on. We identified the gamma positioning and absolutely nailed our trade. I had 718 calls and we pushed all the way through to the gamma wall of 725 to give a 200% return! (image below)

Using gamma combined with some other measurables has really given us an edge on constantly being on the right side of the movement in the market.

Whale Watching is our recurring daily segment where we track the most significant options buys by Wall Street whales. This was Friday’s most significant buy:

This “urgent repeater” alert went off in the last trading hour on Friday. NVDA has pulled back 10% since hitting an all time high a few weeks back. Seeing this alert hit the tape late Friday could be an indicator of the stock leveling out. This contract is obviously short dated and it would need to move quickly. That being said, the flow looks solid on NVDA and could end up being something worth watching.

Right now the largest node sits right at current price for SPY at 720. We’ve got positive gamma stacked above with significant exposure up to 728 and negative gamma stack below with significant exposure all the way down to 710. 720 is the key here. Slipping below it could certainly lead to a cascade sell off. Holding and moving up could certainly see us testing all time highs again.

This is not a setup premarket that is overly obvious yet. This will be one of those days where I wait to see if gamma is building above or below current price. That is going to ultimately dictate today’s price movements.

So my best advice without being able to give you live readings on gamma exposure (yet) is to give it some time and watch the 720 price point. Holding could certainly send us higher and slipping below will typically send us a few levels down.

Speaking of live alerts… We are planning to launch them on Thursday.

Many of you have requested this feature and I have decided it is worth the time and effort to launch this. I want everyone to make more trading, and have access to the tools/updates that I have.

I’ve stated before that I can’t do it for free, but it will be priced low and for retail traders.

Come ready to sign up on Thursday so that we can get a few days of trading in together!

Talk soon!

-Caleb Gregory