SPX Gamma AM
Good morning,
due to a trip to the "redneck riveria" (I love it), I will not post a gamma wrap, so this is my first and final word ;).
Investors used yesterday’s calm to stock up on put options, especially at 4000 and 3700, to be positioned for next week’s FOMC meeting.
China/Japan and Europe are in the green today, but we doubt that there is much upside potential apart from another wave of mechanical squeeze, given the reason mentioned above, and a spectacular consumer spending print, which is sending rate hike expectations substantially higher as we speak (see chart below).
https://www.tradingview.com/x/35pem48g/
Implied dealer gamma registers at -684MM, which points to elevated volatility ahead. Resistance can be identified at 4300, support at 4200/4100.
due to a trip to the "redneck riveria" (I love it), I will not post a gamma wrap, so this is my first and final word ;).
Investors used yesterday’s calm to stock up on put options, especially at 4000 and 3700, to be positioned for next week’s FOMC meeting.
China/Japan and Europe are in the green today, but we doubt that there is much upside potential apart from another wave of mechanical squeeze, given the reason mentioned above, and a spectacular consumer spending print, which is sending rate hike expectations substantially higher as we speak (see chart below).
https://www.tradingview.com/x/35pem48g/
Implied dealer gamma registers at -684MM, which points to elevated volatility ahead. Resistance can be identified at 4300, support at 4200/4100.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.