Good Morning!

Well… Did I nail that price movement or what? I wrote in my newsletter yesterday that we’d see a melt up on SPY to $700 yesterday. We did just that. The gamma walls told the story the entire day. We watched it materialize and play out just as we had hypothesized in yesterday’s letter.

Notice how the large gamma wall at $700 slowly pulled price towards it all day until it finally traded into that range.

We had $696 strike calls and profited nearly 100% today before exiting.

Whale Watching is our daily recurring segment monitoring what Wall Street Whales are buying. For the 3rd day in a row, there were some MAJOR buys today.

This one is wild. $32 million of aggressive calls came in on ASML today. Most of it came in on the last hour of trading. Something is up here. This stock reported earnings yesterday morning, beat on numbers, and then traded down on the day. Then CRAZY flow comes in during the final hour of trading. I think we see something happening here. I guess we will find out. This one is highly unusual and the reason we scan for order flow. They are up to something here.

This is another interesting one. AXTI has been a high flyer stock this year. However, we had a recent pullback and that seemingly is a great time for whales to buy some pretty OTM calls here. $10M of volume on this one is significant. This one is a few months so it could certainly play out. There were some big buys here. I’ve got it flagged as one to do a deeper dive on. It’s certainly interesting to me.

Today’s gamma positioning isn’t quite as clear in the present moment as I sit here premarket. We have some strong gamma overhead as SPY breached all time high’s yesterday. That gamma could absolutely function as a magnet and keep the upside coming. We also have some positioning beneath current price with some significant negative gamma.

This is absolutely going to be one of those days where I will have to wait and see how dealers position once the market opens to get the best read on the direction we are going to go. I’ll be watching for how gamma positioning is changing in real time to give me a better idea of a direction.

I know that on days like this that this intel isn’t the most helpful. I’d rather be honest with you than make something up and the reality is the dealers haven’t picked a clear side for today’s movement. We will observe and try to trade it based on the real time positioning.

Happy Trading!

-Caleb Gregory