Good Morning!

Hope you all have a happy Monday. I’ve got an interesting trade/flow to share with you as we head into the market open today!

This one in particular is interesting to me because of the small size of the company and the lone massive whale purchase of 1.03 million in bullish call options with a July expiration. The stock was up nearly 10% alone on Friday and serves an industry that has potential to see robust growth.

I will be watching this ticker this week to see if any additional bullish flow comes in. I like the potential in this one a lot and have opened a very small position in song calls here with this July 17 strike. If we see continued flow or confirmation that this could run harder I may increase my position. Of course I would tell you all here all about that.

In the gamma heatmap we see a lot of green for AMPX. Actually, we see exclusively green. This acts as a stabilizer for the stock. Basically in an instance of positive gamma, dealers are forced to hedge their positions by buying the dip and selling the rip. Basically, it is their goal to stabilize the stock price until we see something different change on the map.

The biggest conglomerate of volume is around the $15 strike. I would not be surprised to see AMPX pullback into that range which would make for a great entry in my opinion. There is not much positive gamma above the $17 stock price meaning if we get a little push then there will be little resistance or need for dealers to slow down a pump in the stock.

Right now my goal for this newsletter is to give you actionable content and education. I want you all to have the opportunities that institutions have. I have access to those tools and just want to democratize the information that I am digesting in real time. I think the options market is very under served when it comes to helping people move further away from guessing and closer towards a real strategy with institutional level tools and approach.

I will give out official trades and of course each of you should assess those at your own risk and ensure that it makes sense for you. As I disclosed above, this is a small position for me with hopes to add if that $15 price acts as a magnet and dealers defend that range with dip buying. I believe AMPX could make a run and they are showing early signs of that being on the table after Friday’s ~10% move!

I’ll be plugged into the market all day long watching for other trades, flow, and positioning. I’ll be reporting back tomorrow morning with what I find.

I’ll try to find us all some winners this week.

Have a happy trading day and I will catch you all tomorrow!

-Caleb