Good Morning!

We started the day off using the SPY analysis in yesterday’s email and crushed a 100% return on SPY:

Then we followed that up with our scanner picking up unusual options flow on FCEL. This flow was also shared on yesterday’s newsletter:

This was a fantastic day for the live alerts discord who the majority also got in these trades.

Use the button below to join the live alerts discord and get in on the real time action with us!

Whale Watching is our recurring segment where we share the most significant options order flows from smart money that was picked up by our options scanner the day before.

Guess what popped up again on yesterday’s scan? Yep… FCEL. Smart money continues to drive the price up and are buying up OTM options. This was the last order of the day that our scanner picked up. The stock was up around 20% yesterday and despite the run up, smart money continues to pile it as they are apparently expecting more from them. These orders checked the boxes that you want to see checked. They were sweep orders that were filling on the ask side of the spread.

This will continue to be one that I will keep an eye on and as of now I still maintain my position in the $19 option contracts that I shared yesterday. It’s truly amazing what flow watching can do when you see them enough. I immediately saw the quality flow this was and wanted a position.

Wouldn’t you know it? We are green in the premarket this morning. 745 is our most dominant node as I type this. However, there does appear to be positive gamma overhead and I think the most likely path for today is one similar to yesterday’s. I think SPY should grind upward towards the overhead gamma.

Of course, I always leave the door open to what happens when the market actually opens. I want to see gamma pressure building overhead. That gamma buildup predates direction. If we are building gamma above I expect an upward movement and likewise if we build gamma below.

This continues to be a really complicated market to be a bear in. Don’t swim against the tide. If the market is bullish and continues to grind upward towards new all time highs then position yourself to profit from that. There will be a time and a place to be short and that time does not appear to be now.

Hope you all have a great trading day. Keep perfecting your craft. If you want a community to trade with and high quality alerts please consider joining our discord!