Do you want to know what it is?
Updated
Do you want to know what it is?
*nod*
The Flow is everywhere.
It is all around us
Even now in this very post
You can see it when you look in your account
Or when you turn on your Favorite stream
You can feel it when you trade
When you go to the casino
When you pay your taxes
It is the wool that has been pulled over your eyes to blind you from the truth
What truth?
That you are a slave, like everyone you were born into Debt, a prison you cannot smell or taste or touch.
A prison for your PnL
Unfortunately, no one can be Told what the Flow is.
You have to trade it for yourself.
————————
Jan 13
*nod*
The Flow is everywhere.
It is all around us
Even now in this very post
You can see it when you look in your account
Or when you turn on your Favorite stream
You can feel it when you trade
When you go to the casino
When you pay your taxes
It is the wool that has been pulled over your eyes to blind you from the truth
What truth?
That you are a slave, like everyone you were born into Debt, a prison you cannot smell or taste or touch.
A prison for your PnL
Unfortunately, no one can be Told what the Flow is.
You have to trade it for yourself.
————————
Jan 13
Note
How do I get these numbers?It's pretty simple, I get them from CBOE options chain data for SPX.
I know the roll dates and I programmed this indicator to track the historical information about the Gamma and Delta of the options strategy.
If I uncheck to use the actual strikes (from last quarter) I can have the indictor guess what the levels were based on percentage where the strike was during the roll.
The historic uses the close price for the day, but the trade is usually executed at 2-3 and a quick look on the hourly can get you a better spot price for when the contracts rolled.
Next I go through CBOE options chain to find the strikes on the roll date that match the open interest to the relative size of the strategy. It was 13k contracts but all JPM collars have been decreasing in contract size over 2022. JHQDX is now down to 10k
Then I can activate the indicator to use the real option strikes and get a map of sorts where the bumpers are placed for the S&P 500.
The paths taken are not always accurate and rely heavily on understanding current market macro, fed liquidity, dealer directional liquidity of S&P 500 (Gamma Exposure) and a general survey of the overall market sentiment and close understanding of VIX, option greeks and something called the "implied order book".
Not financial advice. I just follow the Flow and relay that information in my TV ideas.
Note
Fed liquidity for anyone asking what that is.Also, my website is linked in my profile you can get S&P dealer directional gamma exposure indicator for free (delayed 15m)
Note
Don't get caught on the wrong side of the rally.While picking these numbers in the future can be helpful, they can also be wrong. In the chart above you can see the instances were JHEQX expired above the call.
It can happen, and the flows will be less impactful the further ITM the call is.
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