Good Morning!

Yesterday SPY slipped into negative gamma territory and took the elevator down. I always keep it real here… I took my first loss on SPY in 2 weeks. I misread one of my data points. It happens; but I won’t let it cloud my execution, judgement, or trading to have a bounce back day today.

Today I start the new streak to top my 2 week win streak on SPY!

We did, however, cash in on 1 of our mid-term swing trades yesterday by closing CLF for around a 50% gain! I always like to share wins from our live community:

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Whale Watching is our recurring segment where we highlight the biggest whale options flows or positioning from the previous trading day.

I’ve decided to keep this one a bit more vague and not share a specific contract as much as just share some interesting observations. META rallied yesterday while the bulk of the market was red. Not only that, but they have some massive gamma positioning overhead for tomorrow’s expiration. To take it a step further, there is massive gamma positioning overhead at the 650 and 700 strike for June 18th (not pictured).

I could be reading too much into it, but this much overhead gamma exposure for a stock that has largely underperformed it’s peers this year is interesting. META is obviously printing cash and a good business. We could see a repricing of their stock price in the near term if gamma exposure is any indicator of a move to come.

SPY continues to sit in a pocket of negative gamma. We have our largest exposure beneath us at 750. This is something to monitor as negative gamma adds gasoline to whatever direction the market is already going. Dealers are forced to sell into weakness or buy into strength which keeps the directional move going.

Ultimately, SPY had a nasty day yesterday. We need to see if it can claw its way back up and resume the grind up or if it is going to sell off further into negative gamma. I’ll be watching the gamma movements today to see if it can give us a direction of where things are heading. I’ll be reporting that info live during market hours in my discord.

You can make money in the market in both directions. You just have to lose any preconceived notions and let the data guide you on what to do.

If you need help with that be sure to use the link below and give our live alerts a try. We’d love to have you in our group!