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Informe GT Gamma Levels

Mar 25, 2020 | 0 comentarios

Gamma registered a decent drop overnight to the lowest level in some time. Futures overnight tested close to 2500 before pulling back. From our perspective there is a lot of open interest in and around the 2400-2500 area and if this were a “normal” market I’d be inclined to suggest we stay in this range for a few days until the data changes. I’d note the Tilt indicator appears to be turning up a bit, and some realized volatility indicators appear to be turning in a bullish direction as well. If you look at the “strike chart” link below you will find a chart we added which maps 2 month realized volatility vs 6 month realized volatility you can see that indicator may be turning as well. Certainly all signals come with a note of caution in this market, but it does seem that our data is a bit more bullish at the moment. We had anticipated a change in data following the large OPEX on Friday, so the improvement in our indicators does not come with much surprise.

 

Event Time EST Actual Forecast Previous
Core Durable Goods Orders m/m 8:30am -0.4% 0.8%
Durable Goods Orders m/m -1.0% -0.2%

 

Signal Name Latest Data Previous
SPX Ref: 2435.5 2416.5
VIX Ref: 62.42 60.9
Gamma Per Point: $-824,343,324.33 $-909,628,750.65
Zero Gamma Level: 3092.0 3106.0
Vol Trig: 3140.0 3140.0
High Gamma Strike Resistance: 2455.0 Size: 0/10 2455.0
Top Abs. Gamma Strike: 2400.0 2400.0
Put Wall Support: 2500.0 Size: 2/10 2400.0
Call Wall Strike: 2455.0 Size: 0/10 2455.0
CP Gam Tilt: 0.5 0.44
Net Delta: $-11,388,250,607.00 $-11,949,687,191.00

 

Model Forecast:
Intraday support/resistance levels (during high gamma periods): 2455.0, 2435.0, 2430.0, 2445.0, 2540.0

The Volatility Trigger has moved DOWN: 3050.0 from: 3100.0
The PutWall has moved to: 2500.0 from: 2400.0
SPX is below the volatility trigger. The 3029.0 level is first level of resistance and is critical as its the negative gamma threshold.
The trigger level of: 3050.0 will act as overhead resistance.
Watching VIX is key, if volatility comes in dealers will start to buy back shares as their short puts lose value. This could start a rally.
The total gamma has moved has moved UP: $-824,343,324.33 from: $-909,628,750.65
Gamma is tilted towards Puts, may indicate puts are expensive
Negative gamma is moderate favoring further swings in the market

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