Good Morning!

Today should be an interesting day in the market as we have SPY pushing all time highs again. We will break that down below but let’s first dive into some of the biggest whale purchases of yesterday!

This whale triggered the “sizable sweep” alert. This is repeated large buys of a particular options contract. This whale is betting on TSLA surging upwards before Wednesday April 29th expiration. TSLA is a volatile name and is certainly capable of catching a bit as it just jumped a lot this past week and has pulled back slightly. This whale is gearing up for the next leg up.

This bull also triggered the sizable sweep alert. SNDK has been a high flyer this and last year. The returns have been so incredibly impressive. It’s certainly possible it could continue its run and move upward. This particular order came in at over $4 million in premium and a few additional orders followed with it. SNDK is certainly capable of pushing to the next level.

Right now our largest node is on the $713 strike with an expiration of today. That’s an important marker because it can act as a magnet and pull prices upwards towards that range. We are sitting in a heavy positive gamma environment as well. This usually makes moves more leveled and controlled. It could very well grind up towards that 713 mark today.

I pretty much mention this every letter but also very important is the rate of change on the gamma positioning once market opens. Watching the active build up or tear down of positioning is a strong signal of where dealers are going to take markets. Paying attention to this does wonders for your trading. You can enter/exit trades preemptively based on how gamma is repositioning.

Losing 708 would shift us into negative gamma and we could slide down a lot quicker. The setup now doesn’t show me that happening today, but things can always change and it’s a price point to be aware of if you are long. There is also active positioning building above 713 that could continue the push upwards should we claim 713.

I also actively manage dark pool levels after hours and see where the largest prints are. These often act as important levels of support/resistance as well. This is where large institutions can take positions “off market” to ensure not to massively move prices with their entries or exits.

Yesterday we had a massive dark pool print at $710.21 which I believe will be an important level today to monitor. $3.5B is a huge print, honestly. It’s another metric that signals bullishness today and I thought was worth sharing.

My inclination is to be long calls (buy calls) should I see active build up of 713 and an upward move. I will wait to see this idea validated before I go long, though. It looks like a pretty good setup!

Happy Tuesday!

-Caleb Gregory