really liking thsse videos. great advertising as well i hope you continue as i know others are feeling the same way and liking the video. also comments help the engagement (algo) so cheers. hope to see more and more of these break downs. see ya in the money, ta ta.
can you clarify at 17:20 .... the put volume is higher than the call volume, so the bearish flow is stronger, right? Call volume $3.2B but also Put volume is $4.84B. You even highlighted the downward vertical purple line with red color. I can be wrong just want to understand better.
In this particular case you'll notice the steepness of the put volume. It was early and then flat lined substantially. This is indicating that it's likely these are hedges rolling at a cost effective basis. In conjunction with that you saw substantial amounts of longer-dated call buying pick up and stay steady. These hedges aren't a significant concern in this scenario as net on net volatility is crushing throughout the term structure. As volatility continues crushing and time passes these hedges will continue to depreciate. Further continuation of call demand has the potential to drive price higher as traders aren't looking to buy OTM longer-dated put options. Essentially the important thing to take away is, while the delta is visible the strong declination of volatility and time passing reduce the impact of those puts giving the calls overall control of price action. You'll also notice that while price did chop around most of the day it did trend fairly upward throughout most of the day. As this week's expiry falls off and that gamma is released it could lead to strong momentum to close out the week.
Thanks for sharing your insights Brent
really liking thsse videos. great advertising as well i hope you continue as i know others are feeling the same way and liking the video. also comments help the engagement (algo) so cheers. hope to see more and more of these break downs. see ya in the money, ta ta.
Glad you like them!
Great video Brent, the volatility dashboard tools are fantastic
thanks so much. we put a lot into it - so glad that it’s adding value!
This is not just a trend. This is mania
can you clarify at 17:20 .... the put volume is higher than the call volume, so the bearish flow is stronger, right? Call volume $3.2B but also Put volume is $4.84B. You even highlighted the downward vertical purple line with red color. I can be wrong just want to understand better.
In this particular case you'll notice the steepness of the put volume. It was early and then flat lined substantially. This is indicating that it's likely these are hedges rolling at a cost effective basis. In conjunction with that you saw substantial amounts of longer-dated call buying pick up and stay steady. These hedges aren't a significant concern in this scenario as net on net volatility is crushing throughout the term structure. As volatility continues crushing and time passes these hedges will continue to depreciate. Further continuation of call demand has the potential to drive price higher as traders aren't looking to buy OTM longer-dated put options. Essentially the important thing to take away is, while the delta is visible the strong declination of volatility and time passing reduce the impact of those puts giving the calls overall control of price action. You'll also notice that while price did chop around most of the day it did trend fairly upward throughout most of the day. As this week's expiry falls off and that gamma is released it could lead to strong momentum to close out the week.
Thanks. The net on net volatility crushing term structure explains a lot.
16:45