11/04 Weekly SPX Market Analysis with seamless GEX levels
Güncellendi
The U.S. presidential election is on November 5, and this week we can expect increased volatility due to the uncertainty. For options traders, one thing is certain: volatility will likely rise leading up to the election, peak around the results, and then gradually subside as the “fireworks” end. It’s essential to consider this in every trading decision.
While the current Implied Volatility (IVx) isn’t extremely high, the IV Rank (IVR) is quite strong at 41, and this is likely to remain due to the increasing uncertainty. Based on the blue OTM (Out of The Money) delta curves, the market is currently pricing in a strong downward movement for the week, aligning with the negative gamma zone and negative gamma profile. For a bullish shift, we would need a strong push above 5845 to enter positive gamma territory (HVL level is the battleneck).
⏩ The 5700 level is a key PUT support across multiple timeframes. If this level breaks, turbulence is expected, with increased downward movement likely to follow, first to 5650 and potentially down to 5600, where larger PUT gamma walls are located.
⏩ According to the 16-delta OTM curve, a close above the previous all-time high is less likely. If there’s a strong breakout to the upside, the positive gamma threshold stands at 5850, and above this, buyer pressure could extend up to 5925.
⏩ I consider the 5700-5845 range as a “chop zone,” where high volatility is expected this week. In this zone, bears and bulls will be in constant battle, and I do not expect a clear trend. I focused on Friday’s expiration in this analysis, as market outlooks remain highly uncertain ahead of the election.
The strong PUT pricing skew is a natural phenomenon and is expected to increase, especially since we are in a negative gamma zone. For December expirations, PUT options cost nearly twice as much as CALL options, as shown by our oscillator for 12/20 expiry.
There’s already ~6% IV backwardation between the 11/08 and 11/11 expirations, making this ideal for time spreads. However, caution is warranted—front-month PUT calendar and diagonal spreads can easily turn negative if front IV rises more than back IV.
Remember! It’s not mandatory to trade during highly uncertain periods! Staying out of the market is also a position, and sitting in cash is actually the safest choice, especially in a volatile week like this.
⏩You can check my previous week's analysis, every one was accurate, I hope this one will useful too.
10/28 SPX
10/21 SPX
10/14 SPX
10/28 QQQ
10/14 QQQ
While the current Implied Volatility (IVx) isn’t extremely high, the IV Rank (IVR) is quite strong at 41, and this is likely to remain due to the increasing uncertainty. Based on the blue OTM (Out of The Money) delta curves, the market is currently pricing in a strong downward movement for the week, aligning with the negative gamma zone and negative gamma profile. For a bullish shift, we would need a strong push above 5845 to enter positive gamma territory (HVL level is the battleneck).
⏩ The 5700 level is a key PUT support across multiple timeframes. If this level breaks, turbulence is expected, with increased downward movement likely to follow, first to 5650 and potentially down to 5600, where larger PUT gamma walls are located.
⏩ According to the 16-delta OTM curve, a close above the previous all-time high is less likely. If there’s a strong breakout to the upside, the positive gamma threshold stands at 5850, and above this, buyer pressure could extend up to 5925.
⏩ I consider the 5700-5845 range as a “chop zone,” where high volatility is expected this week. In this zone, bears and bulls will be in constant battle, and I do not expect a clear trend. I focused on Friday’s expiration in this analysis, as market outlooks remain highly uncertain ahead of the election.
The strong PUT pricing skew is a natural phenomenon and is expected to increase, especially since we are in a negative gamma zone. For December expirations, PUT options cost nearly twice as much as CALL options, as shown by our oscillator for 12/20 expiry.
There’s already ~6% IV backwardation between the 11/08 and 11/11 expirations, making this ideal for time spreads. However, caution is warranted—front-month PUT calendar and diagonal spreads can easily turn negative if front IV rises more than back IV.
Remember! It’s not mandatory to trade during highly uncertain periods! Staying out of the market is also a position, and sitting in cash is actually the safest choice, especially in a volatile week like this.
⏩You can check my previous week's analysis, every one was accurate, I hope this one will useful too.
10/28 SPX
10/21 SPX
10/14 SPX
10/28 QQQ
10/14 QQQ
İşlem aktif
AFTER ELECTION:
GEX profile has changed, huge breakout to the upside with gamma squeeze.
If we are breaking above 5925, the next positive gamma wall at 5975 until friday.
We are back at the positive gamma territory now:
İşlem kapandı: hedefe ulaştı
5975 acted as resistance now. Weekly close is here, and the call gamma walls are almost together. I would be quite surprised then if we go 6000 or above tomorrow!We have arrived, massive call gamma resistance is here.
Not
This was the first gamma-squeeze week while my gex levels was published, very interesting to see how this is working in action.
We'll see the last day of the week tomorrow. Get some popcorn
Not
6000 acted as final resistance for the week after multiple gamma squeeze on this weekNot
Analysis for this week:
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✔ IVRank ✔ CALL/PUT skew ✔ Volatility Skew ✔ Delta curves
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✔ 𝗔𝘂𝘁𝗼-𝗨𝗽𝗱𝗮𝘁𝗶𝗻𝗴 𝗚𝗘𝗫 𝗹𝗲𝘃𝗲𝗹𝘀
✔ IVRank ✔ CALL/PUT skew ✔ Volatility Skew ✔ Delta curves
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