Good Morning!

Yesterday the market popped, faded a bit, and then settled into that upper range it opened at. All in all, if you weren’t already long positions the market didn’t present a ton of opportunity yesterday.

Interestingly enough, take a look at the new premium flow for the day. It was by far bearish.

This is often an indicator of what’s ahead. It will be interesting to see how the market plays out today and if the overwhelmingly bullish flow coming across the tape leads to a red day today.

Let’s take a look and see what the most significant whales on wall street were buying:

Yes, I know that this contract has already expired. However, I wanted to include it to show you the effectiveness of the “Urgent Repeater” alert with the software I use. We picked up the flow before META’s A.I. announcement today and the alert ended up going up nearly 500%.

Based on the poll results from yesterday’s newsletter, you guys want to start getting these alerts in real time and I think we can provide that. The urgent repeater is my favorite alert.

Some interesting flow came in on MU that looks short term bearish. This particular whale is betting on a rapid move down towards $377.5 before Friday. If they are right they could stand to bank big from this. Being this short dated and out of the money it will need to move fast or theta will begin to erode contract value pretty quickly on this one. Ultimately with positions like these it leaves me asking myself… “Does someone know something…”

This is where I give you a daily breakdown on how to trade SPY based on the dealer positioning that we can see made available by this Gamma heatmap.

SPY is at a crossroads today. We have a lot of resistance built up overhead today and tomorrow. We have a lot of negative gamma built up underneath. These setups aren’t the easiest to trade. In these moments, I often just try to exercise patience and allow the market to make a move. If we start slipping then 670 becomes a target and I would buy some puts. Otherwise, I am going to sit back and allow gamma structure to give us a play here.

I’ll be actively monitoring the change on gamma structure as that often becomes relevant if we see massive volume starting to rapidly accumulate on a particular node or range.

Once we get live updates going, I will be able to really help you on these spy positions. Can’t wait to get that going!

Let’s see how it all plays out!

-Caleb Gregory