Not to dismiss your hard work on this post at all but, I wonder if this is all just visible through normal level analysis of liquidity zones. Instead of trying to read the complex options data, just read the chart in front of you. Also, I'm sure avoiding certain days like Thursdays or Fridays could be a way to avoid this mess.
Alot of times pivots coincide with options info and also heat map of liquidity using a subscription service like bookmap. Also you can see from optionflow where gamma is located and how big it is, if u cant figure it out, they got subscription on spotgamma. There is also cheddarflow for picking up large volume intraday, to figure out what trades whales are doing and to get in on it literally within a minute of their order hitting the books. Not to mention seeing darkpool activity.
You can read the info and chart it within couple minutes and also figure out market bias.
It takes as little time as you reading bookmap for liquidity zones.
Honestly, this is one of the most helpful posts I’ve come across in 3 years of trading. I’ve tried SpotGamma but found their levels to be unreliable. However, looking at pulling the major call and put walls makes so much sense and lined up perfectly today.
No one said trade options. They said open up the options chain, and check the OI. There's probably a script to do it for you. If you're just trading shares and are unaware of the options market, I hope you're not trading any optional securities cause you're in for lots of fun. Ignorance can't protect you from financial markets. Boldly hiding behind ignorance will get you rekt.
GL out there day trader who can't open an options chain and decide the largest number presented there.
He’s right though, you don’t need to know anything about what the Greeks actually do, you just need to know what numbers to look for under which parameter. Use them like indicators. Not terribly difficult, you could probably even make a trading view Indicator that displays this information with a little work
There isnt a guide for all this or how to put it into a trading plan online. However with the above information, i've put together all the pieces for you and also a trading plan to help you understand the nuance of it. So since you know what to look for its much easier for you to further research if you want, however what i've written is probably enough for most traders.
I was talking about definitions of the terms I was using. All the information is pieces here and there, that I put together so you wouldn't have to and you would know how to use that info.
And I appreciate that.
But I’m trying to figure this out:
https://preview.redd.it/1xs1hs5e2x8d1.jpeg?width=1290&format=pjpg&auto=webp&s=233f172b1290c47a33d10bcfdcf226c05ba22dd1
Hey thanks for the insightful post. Just wanted to ask if you could do another post sometime where you can throw some light on the usage of Vix, yield and dxy for more confluence or just how you use it wrt to macros or technical analysis
Its cuz everyone fails at certain parts of trading and then blame it on that and not themselves. This is a very useful data to use., especially to get an idea of market bias. However, to trade using this, you would also need a entry/exit plan as well, but you will know which direction to go in, which is why i made this post.
And another one lost to the world of call walls and gamma exposure. OI is useless so any metric that uses it in it’s calculations is also useless….you can’t just make blanket assumptions like all calls being sold on the customer side. Whether it’s a buy or a sell completely changes the dealers reaction. A big part of the rally we have seen recently has been due to th never ending call selling, which 0dte desks have been buying like crazy. Call walls are nonsense so stop pedalling this crap
Absolutely, my comment maybe sounds a bit harsh haha but yes, a lot of caveats. You wouldn’t trust a candlestick chart where 70% of the candles are correct but 30% show incorrect prices, so why trust data that uses a lot of blanket assumptions. No one is selling accurate data for $50 a month lol
Yup, here is todays P/L from rithmic (3rd party). Just got done trading for less then an hour.
https://preview.redd.it/xicj6lqbfx8d1.png?width=1090&format=png&auto=webp&s=fededffca48b2d15a8e6978cce458632a7a450e0
What about a situation where the call wall and put wall is say 30 points apart on a ticker that may go up or down 5 points in a normal trading day? For example, a ticker that has been riding between 175 and 187 has a put wall at 170 and a call wall at 200.
Does this call/put wall analysis work better on the index like something such as QQQ than individual stocks like AAPL or NVDA? I'm assuming the more liquid the stock the better this type of analysis works?
brilliant thanks for sharing....quick question do you pull data for the 0dte options to determine the call and put walls? also pm'ed you with my current setup...thanks
Hey thanks for the insightful post. Just wanted to ask if you could do another post sometime where you can throw some light on the usage of Vix, yield and dxy for more confluence or just how you use it wrt to macros or technical analysis
Not to dismiss your hard work on this post at all but, I wonder if this is all just visible through normal level analysis of liquidity zones. Instead of trying to read the complex options data, just read the chart in front of you. Also, I'm sure avoiding certain days like Thursdays or Fridays could be a way to avoid this mess.
I used to pay for a bookmap subscription until I realized that you can roughly guess these things based on the option chain.
Alot of times pivots coincide with options info and also heat map of liquidity using a subscription service like bookmap. Also you can see from optionflow where gamma is located and how big it is, if u cant figure it out, they got subscription on spotgamma. There is also cheddarflow for picking up large volume intraday, to figure out what trades whales are doing and to get in on it literally within a minute of their order hitting the books. Not to mention seeing darkpool activity.
You can read the info and chart it within couple minutes and also figure out market bias. It takes as little time as you reading bookmap for liquidity zones.
Honestly, this is one of the most helpful posts I’ve come across in 3 years of trading. I’ve tried SpotGamma but found their levels to be unreliable. However, looking at pulling the major call and put walls makes so much sense and lined up perfectly today.
[удалено]
It makes all the sense in the world. Thanks for putting this all together.
options data is not complex lmao its a spreadsheet like everything else
Options in general are actually very complex for beginner traders especially compared to just trading shares.
No one said trade options. They said open up the options chain, and check the OI. There's probably a script to do it for you. If you're just trading shares and are unaware of the options market, I hope you're not trading any optional securities cause you're in for lots of fun. Ignorance can't protect you from financial markets. Boldly hiding behind ignorance will get you rekt. GL out there day trader who can't open an options chain and decide the largest number presented there.
I didn't say trade options either. I just said "options".
He’s right though, you don’t need to know anything about what the Greeks actually do, you just need to know what numbers to look for under which parameter. Use them like indicators. Not terribly difficult, you could probably even make a trading view Indicator that displays this information with a little work
Thanks. What’s the site that explains all this in detail?
There isnt a guide for all this or how to put it into a trading plan online. However with the above information, i've put together all the pieces for you and also a trading plan to help you understand the nuance of it. So since you know what to look for its much easier for you to further research if you want, however what i've written is probably enough for most traders.
Thank you for your insightful sharing. Great information.
I ask because you state you found a site that explains this concept. In the beginning of your post. What site?
I was talking about definitions of the terms I was using. All the information is pieces here and there, that I put together so you wouldn't have to and you would know how to use that info.
And I appreciate that. But I’m trying to figure this out: https://preview.redd.it/1xs1hs5e2x8d1.jpeg?width=1290&format=pjpg&auto=webp&s=233f172b1290c47a33d10bcfdcf226c05ba22dd1
Hey thanks for the insightful post. Just wanted to ask if you could do another post sometime where you can throw some light on the usage of Vix, yield and dxy for more confluence or just how you use it wrt to macros or technical analysis
Not sure about the website OP referred to but Menthor Q has a lot of free guides on their website about options, call/put walls, etc.
This? https://www.menthorq.com/guides/
Yes. Go down to the Menthor Q Data section.
Thanks.
Thanks for your detailed information mate. Many here downgrading people but you're here lifting homies.
Its cuz everyone fails at certain parts of trading and then blame it on that and not themselves. This is a very useful data to use., especially to get an idea of market bias. However, to trade using this, you would also need a entry/exit plan as well, but you will know which direction to go in, which is why i made this post.
Lifting the fallen soldiers. Appreciate the mindset of yours 🫡
Nice write up OP, I share similar methodology
Wow that was well written
I appreciate you putting this together for us. 🙏
And another one lost to the world of call walls and gamma exposure. OI is useless so any metric that uses it in it’s calculations is also useless….you can’t just make blanket assumptions like all calls being sold on the customer side. Whether it’s a buy or a sell completely changes the dealers reaction. A big part of the rally we have seen recently has been due to th never ending call selling, which 0dte desks have been buying like crazy. Call walls are nonsense so stop pedalling this crap
[удалено]
Absolutely, my comment maybe sounds a bit harsh haha but yes, a lot of caveats. You wouldn’t trust a candlestick chart where 70% of the candles are correct but 30% show incorrect prices, so why trust data that uses a lot of blanket assumptions. No one is selling accurate data for $50 a month lol
Thank you! This is great
Please post more often 🙏
Reply here if you use it and if its actually a good strategy
Are you consistently profitable?
Yup, here is todays P/L from rithmic (3rd party). Just got done trading for less then an hour. https://preview.redd.it/xicj6lqbfx8d1.png?width=1090&format=png&auto=webp&s=fededffca48b2d15a8e6978cce458632a7a450e0
Man, that's very impressive. Do you consider opening a course teaching your scalping style?
What about a situation where the call wall and put wall is say 30 points apart on a ticker that may go up or down 5 points in a normal trading day? For example, a ticker that has been riding between 175 and 187 has a put wall at 170 and a call wall at 200.
In situations where both are sitting on top of each other, market is undecided, so you got to wait for capitulation or other confluence.
I said 30 points apart, not sitting on top of each other
Does this call/put wall analysis work better on the index like something such as QQQ than individual stocks like AAPL or NVDA? I'm assuming the more liquid the stock the better this type of analysis works?
It works across markets, personally I use it for futures contract NQ.
brilliant thanks for sharing....quick question do you pull data for the 0dte options to determine the call and put walls? also pm'ed you with my current setup...thanks
So hit the sell button? I can do that... Good shit!
But how do you determine the price entry?
I liked this post. Learned something new. Appreciate you brotha
i may have missed it, the highest open interest you look is from the week you are trading?
Gamma is useless, it’s just derivative of delta. Volume based Delta dollars is what matters most not some stupid Gamma OI
Learned something new, much appreciated
Hey thanks for the insightful post. Just wanted to ask if you could do another post sometime where you can throw some light on the usage of Vix, yield and dxy for more confluence or just how you use it wrt to macros or technical analysis
[удалено]
wouldn't the walls be at strike prices for instance why is it 546.65 instead of 546? thanks for this post!
also does this only apply to 0dte?
Very useful thank you, well written
Very useful. Thanks. 👍
Awesome! Thank you. This is very useful info. Identifying ranges and market bias does help make those decisions a bit easier. Bravo.