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Informe GT Gamma Levels

Abr 1, 2020 | 0 comentarios

Anti-gravity didn’t last all that long as we are now just under 2500 in futures. 2500 is now the high gamma strike for the day, with negative gamma building back up a bit overnight. We have pretty light put interest (relative to March) and that could become an issue for the rally here. If traders feel the need to add hedges we could see more pressure in the markets as put buying pushes dealers to short futures (customer long put, dealer short put and must hedge using short futures). Of course there is some irony in that, but it is also those put purchases that can help spur rallies when they unwind. The point is that this could put markets in a bit of a precarious position as we have 1) negative gamma that may lead dealers to short if the market goes lower and 2) (if) we get put buying in size that also may cause dealers to short futures. This is not a statement that I think a selloff is imminent, but should a selloff start it could gain steam rather quickly.

 

Event Time EST Actual Forecast Previous
No events

 

Signal Name Latest Data Previous
SPX Ref: 2483.75 2575.0
VIX Ref: 59.59 53.41
Gamma Per Point: $-834.48MM $-755.74MM
Zero Gamma Level: 3063.0 3062.0
Vol Trig: 3000.0 3025.0
High Gamma Strike Resistance: 2455.0 Size: 0/10 2530.0
Top Abs. Gamma Strike: 2500.0 2600.0
Put Wall Support: 2500.0 Size: 3/10 2500.0
Call Wall Strike: 2530.0 Size: 0/10 2530.0
CP Gam Tilt: 0.53 0.58
Net Delta: $-8,999.09MM $-6,676.07MM

 

Model Forecast:
Intraday support/resistance levels (during high gamma periods): 2455.0, 2530.0, 2545.0, 2460.0, 2535.0

The Volatility Trigger has moved DOWN: 3000.0 from: 3025.0
The High Gamma Strike has moved to: 2455.0 from: 2530.0
SPX is below the volatility trigger. The 3051.0 level is first level of resistance and is critical as its the negative gamma threshold.
The trigger level of: 3000.0 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 DOWN: $-834.48MM from: $-755.74MM
Gamma is tilted towards Puts, may indicate puts are expensive
Negative gamma is moderate favoring further swings in the market

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