ฝัง
- เผยแพร่เมื่อ 20 ธ.ค. 2024
- Join SpotGamma live with an options gamma 101 class and discussion of how you can use key SpotGamma levels to improve your trading and market forecasts.
We discuss the importance of monitoring dealer gamma / market maker gamma and how it may drive market volatility.
In this session we covered delta hedges, gamma hedges and options vanna.
PLUS catch a preview of NEW features!
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Here at SpotGamma we use the options market to forecast the stock market. Knowing the drivers behind market movement is key to establishing, managing or exiting positions. We provide actionable daily options flow data to traders and investors.
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*Note: This presentation is intended for general information and entertainment purposes only. No mention of company names, trading strategies or illustrative examples constitute investment advice. SpotGamma advises you to seek investment advice from a licensed professional.
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Futures and forex trading contains substantial risk and is not for every investor. An investor could
potentially lose all or more than the initial investment. Risk capital is money that can be lost without
jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only
those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of
future results.
Hypothetical performance results have many inherent limitations, some of which are described below.
No representation is being made that any account will or is likely to achieve profits or losses similar to
those shown; in fact, there are frequently sharp differences between hypothetical performance results
and the actual results subsequently achieved by any particular trading program. One of the limitations of
hypothetical performance results is that they are generally prepared with the benefit of hindsight. In
addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can
completely account for the impact of financial risk of actual trading. for example, the ability to withstand
losses or to adhere to a particular trading program in spite of trading losses are material points which
can also adversely affect actual trading results. There are numerous other factors related to the markets
in general or to the implementation of any specific trading program which cannot be fully accounted for
in the preparation of hypothetical performance results and all which can adversely affect trading results.
I've rewatched this over and over, I love it, this is better than NFLX anyday. Thank you!!!!!!
thanks Nicole!
Recent subscriber here. Very much needed in depth video. Clarified many points i struggled understanding. Thank you.
appreciate that feedback. thanks very much paul
Hey, you should start a store, and call it GammaStop. I know I’d shop there.
Thank you for this great video. Please make more.
9:32 Why does the model assume long gamma (dealers) necessarily means long calls? Long gamma may just as well come about by being long puts. Same thing vice versa: Negative gamma may just as well be a sign of being short put options.
TLDR Gamma does not necessarily say anything about directionality, no?
we use gamma as an indicator of volatility, not directionality.
when i'll run my own desk i'll get spotgamma for every trader
NICE!!!
Thanks! we would understand gammaspot how Line in the sand?
when they say deltas to untwine what do you mean, if someone buys huge call contracts, that means the dealer is short calls now, needing to hedge the dealer buys stocks. now to unwine do we sell the stock
So when dealers/MM etc are hedging by buying/selling underlying stock/futures etc, who is on the other side of 'those' trades?
Also, in your dealer gamma positive vs negative chart example, there is no mention of when dealers are 'short' call options and 'long' put options. Do not these situations also occur? I would assume dealers being short call options would generally be the norm
there are all sorts of various players/counterparties.
there are certainly times when dealers could have the opposite position (short call/long put) which is why we pay so much attention to the strikes at which gamma is concentrated and shifts in those positions. the idea is something like large gamma strikes = liquidity and price tends to move toward liquidity.
Awesome video. I know you have a vol trigger that can that be used to identify dangerous market scenarios. I have been using a market breadth and VIX futures model to trade leveraged ETFs for many years, but I have always been intrigued by the options-driven aspect and feel that it could add much to a risk-on/risk-off model for SPY. Do you see yourself offering any sort of service (that combines not only the vol trigger, but also gamma vanna charm) like this in the future?
Hi Richard - what you describe is our core service at spotgamma.com
Please help me understand how a trader buys 100 contracts of 390 spy puts and ends up with +50 option delta, as my memory recalls long puts have negative delta since buying puts is a bearish trade🤔so delta here should have a negative sign or am I missing something here???
the trader buying puts indeed has a negative delta. the dealer who sold the puts would have a positive delta position. let me know if that helps!
i'm a spotgamma pro member - when i go to member -> portal i can't see the two popups. i instead see the a 'start your free trial' box (i'm already a member)...any help would be appreciated!
hi AZ - we were updating the website. you should be good now!
Cheers from Vancouver
Same here 👌
man what a nice place to be!
Not sure to understand Call Wall and Put Wall. Even if you display Large OI for Put and Call ... MM always delta hedge for the entire options book. He will not hedge Calls and Puts separately. He will hedge the "Net Delta". You could have large OI in Puts and Calls but at the end he will hedge the Net.
yes, positions net out. when at the call wall the market is mostly in call positions, and in put wall its mostly net put positions. i believe at these strikes hedging occurs because gamma will be very large and possible at peak sensitivity.
Not easy to understand , very concentrated
There is nothing to understand. They don’t understand Gamma themselves; therefore, don’t expect them to explain it to you.
I have no idea what they’re measuring and calling it a “Gamma flip line”, but I’m 100% certain that line has nothing in common with the real Gamma (rate of change of Delta).
Thank you
I'm so confused... and I have two engineering degrees
All this is mumbo jumbo and complicates your trading decision. Just follow price action and you will do much better than all these crap.
Brilliant
NIO HOW looowww can we gooooo
closed above HIGHEST CALL VOLUME AND PUT VOLUME CONCENTRATION for weeklys and heavy put volume well into the money especially for next week.........
Fukn A man
Nah... Frankly, your system is useless and can be counterproductive if you use it.
You’re using gamma incorrectly. Gamma is not a static value, it’s constantly changing, it’s the rate of change of delta.
You cannot predict gamma or gamma “flip line” ahead of time (unless, you are SoftBank and can create positive gamma by buying calls at accelerating pace, or you’re Goldman and have an algorithm that can manipulate VIX).
He covers that...did you watch to the video? Zero gamma etc.
This comment is counterproductive as you clearly didnt watch the video.
Wow! An algorithm that can manipulate the VIX! Can you please post a video and share your expertise?