Housekeeping: Watch this and you will get more out of the ZH commentary surrounding these Option behaviors and begin to understand the real value of SpotGamma’s work if you look at it.
Bottom Line:
Must watch if you want to:
Get more out of ZH Gamma Clench/Unclench posts
How the Citadels of the world usually operate
How to read an Options Gamma chart
What is this?
This is an extemporaneous version of a master class in capital markets as taught to MBA students by a 30 year professional in markets.
If you want a better handle on the CTA flow in Gold, Silver, and Copper this week, this video will do that.
If you wish to be able to use future CTA reports to inform your trading better; This will get you started on that path.
If you want to get more out of the world of ZH and spot gamma on option flows. This will do that.
And if you want to see a trader screwup in his analysis (at 2 points) and correct himself…. you will see that as well.
This is how pros think.. when they think outloud.
Approximate Timestamps (Options in Bold)
0:00- CTA preview
2:12- Goldman’s CTA analysis deciphered
6:00- Important Gold CTA vs Macro comment
7:14- Widow maker trade define ht
21:11- BOA’s CTA report walkthrough begins
23:50- Options Players and Delta/Gamma Hedging Behavior starts
27:05- What Citadel Does Types of Gamma Hedgers Marketmakers
29:33- Gamma Clench
31:53- Gamma Unclench
34:25- Clench/Flip/Unclench Gamma graph
36:25- How the Citadel types handle risk
37:50- Use with Technical levels
39:00 How Dealers put bandaids on bullet holes
40:35- a moment to discuss implied vs realized volatility
43:00- BOAs CTA model grid- (misinterpret and correct.. Lol)
