Good Morning!

Using gamma zones to understand where SPY is trading and how it is going to react when it tests those zones is a simple way to trade. I’ve attached yesterday’s SPY gamma chart. You can see from the jump that 735 is a large gamma zone that acts as support and propels SPY from 735 up to near 740. Trading options against this move with the understanding that this range should propel us upward offered good returns. You also operate with the understanding that if it gives away that 735 zone it is a key range you can flip short as we saw later in the day. Why SPY gave away the 735 range it traded down to near 730 also making for a great trade short when it happened.

My live alerts community gets this play by play so that you can see the data in real time and also get my commentary.

Use the link below to join and learn this valuable way to trade. I’ve auto discounted the first month! The membership also comes with automated smart money alerts and an alert to any trade that I make.

SPY is up a little over a half percent this morning. Major area has shifted overhead to 740 as I type this. This becomes my initial target on the day. MU earnings were a blowout yesterday and has kind of pulled up the entire market in yesterday’s post market hours and today’s premarket hours. I want to see how SPY materializes when the market opens and then try to trade it based on those numbers. If we get a strong positive gamma setup I suspect it may grind up to 740 and test that range.

Thanks for reading this edition of OPG Order Flow. Our goal is always to offer data driven charts and commentary to support responsible and effective trading.

I encourage you to give our live alert community a chance and practice trading with the understanding of these important ranges that are establish by institutional dealers.

I’ve auto applied a discount for the first month to allow you to test it at a lesser price.

-Caleb Gregory