Good Morning!

Hope you all had a great bounce back day in the market yesterday. I had a prescheduled travel day and unfortunately couldn’t get the letter out to everyone yesterday.

Real quick, let’s knock out a few operational details before we talk stocks and trading for today. First, I have had overwhelming feedback that you guys want live alerts from me. That wasn’t the intent when I started this letter, but I am willing to do it.

I am planning to launch those alerts next week. However, that is a commitment that will take a lot of my time to commit to finding you all quality trades. So I took a quick vacation before we launch that platform next week. I still plan to loosely trade and write this letter to the best of my ability this week. So hang tight with me this week, and next week I will have alerts ready for those of you who want them!

DVN triggered my favorite alert which is the “urgent repeater” alert. Nearly $4 million in bullish options buying came in on DVN in the last hour of yesterday’s trading market. This is interesting because it isn’t one you often see a ton of flow on. I am definitely interested to see how this one progresses in the coming days as we have over a month to watch this one play out. There was definitely some bullish flow on this one, though.

Let me preface this with this disclosure: I have some prior commitments this week. I will have to update SPY at around 6:30 AM and that may not always give us the most accurate or up to date reading on the gamma positioning. I will still do my best to tell you what I am seeing at the moment and then of course next week we will lock in and give you SPY updates every 30 minutes.

Look out below! Right now our biggest gamma positioning on SPY is at $701. As it stands at 5:54 AM premarket as I type this we have slid into a negative gamma environment. Expect volatility.

As I mentioned above, This analysis is a bit early. These gamma structures will come into full view when the market opens. That being said, be careful with SPY to the downside today. This is setting up for a good day to play puts. I will likely not be trading today. Not because this setup doesn’t look good but simply because I will be distracted with some prior engagements. That -1.5B negative gamma is going to draw SPY down from where it closed today. Be prepared for that price movement.

Happy Trading!

-Caleb Gregory