Next Big Move: Weekly GEX & Key LevelsWeekly GEX & Key Levels – Options Recap
Chop Zone (5850–6055)
This range is likely the short-term “parking” area for sideways price action.
Expect the market to oscillate here unless a stronger directional catalyst emerges.
Gamma ‘Deny Zone’ (Below 5850)
Dropping below 5850 can amplify negative gamma effects, potentially fueling a stronger downside move.
Watch for increased volatility and momentum if this area is breached.
Gamma-Squeeze Breakout Zone (Above 6055)
A break above 6055 neutralizes the call gamma wall, potentially triggering a rapid rally (gamma squeeze).
Consider bullish option plays if this level is reclaimed and confirmed.
Options Perspective
IVRank 23.8: Moderately elevated implied volatility (~1–2% potential daily moves).
Puts 87%: Significant open interest in PUT positions, especially around 5800–5900 strikes, often acting as a strong support zone.
Gamma Flip (~5923): A critical pivot where market maker positioning flips, potentially creating intraday turning points.
Practical Strategies
Range Trading in the Chop Zone
Iron condors, short strangles, or other neutral strategies.
Stay alert for any breakout that can quickly move the market beyond this range.
Bullish Breakout Above 6055
Consider call debit spreads or bull call spreads to capture a swift upside move.
Look for a confirmed break (ideally on higher volume).
Bearish Breakdown Below 5850
Hedge with protective puts or put debit spreads if you hold existing long exposure.
Negative gamma could accelerate downside momentum.
Summary
Base Case: Likely consolidation between 5850 and 6055.
Upside: Above 6055, a gamma-driven squeeze could rapidly push prices higher.
Downside: Below 5850, stronger selling pressure may emerge.
Manage risk according to your plan and remain vigilant for any surprise catalysts.
Disclaimer: This is not investment advice. Always use proper risk management based on your own trading objectives.
