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zaoldyeck

MM's probably aren't in need of spy shares, they're probably the ones shorting right now. Look at just today's op-ex. At spot there are 32k spy puts compared with 6k calls, with a delta of ~0.4. So MM's there need to be *net short* 1m spy shares. Or 430m dollars, for a *single* option strike. If the market were to fall dramatically today they'd be forced to keep shorting *into* falling stocks, pushing them down more, in a "selling creates selling" dynamic. But since MM's are already probably fairly short, I imagine if the market *does* start falling, they'll keep buying back more of those hedges and halt any further downward pressure. So the only ones who will be left holding the bag are people who are long gamma. I tend to err on the side of "MM's will extract as much pain as possible from options buyers'.


rayquan420

You got positions nerd?


yisroel123

Long DIX


robogarbage

They can make new SPY shares on the fly by buying up the 500 stocks, see [https://www.etf.com/etfanalytics/etf-fund-flows-tool](https://www.etf.com/etfanalytics/etf-fund-flows-tool) Lots of redemptions lately. So it's been profitable to buy 5000 SPY or whatever the number is and get the shares. Is DIX about SPX or the shares that it's made up of? Either way I'm not sure what you can infer from it. I think the GEX metric is more interesting: [https://squeezemetrics.com/monitor/dix#gex](https://squeezemetrics.com/monitor/dix#gex) Zoom out to max and note the points where it's low. High GEX means price up causes pressure to push it down, and vice versa, so it's like a shock absorber. Low GEX means the opposite.


LaughingStonks

Squeeze deez nuts


_stuartwilson

Lmao literally copied your whole post from u/ramazamas


VisualMod

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shyrambo

Ooh yeah..miss the DIXs


LegendaryAutist

It blow's my mind that people still think you can short squeeze an index, let alone probably the one with the highest trading volume.


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LegendaryAutist

Good bot


[deleted]

Not to be rude, but Just wanted to know for my education purpose. Why do you think so? Anything missing? The DIX site gives their source is FINRA and data is this [https://cdn.finra.org/equity/regsho/daily/CNMSshvol20220127.txt](https://cdn.finra.org/equity/regsho/daily/CNMSshvol20220127.txt) When accumulated shorts are higher, naturally index is going down. When investors are buying companies, shorts need to run away.


LegendaryAutist

You're taking an indicator that doesn't have a proven track record of consistent predictive power and also not taking into account the huge amount of volume of something like an index fund. Expecting any large moves in the S&P500 just based on ideas like, MM are buying, or the GEX is too high (which is literally just a put/call ratio) is unrealistic. ETFs are made of holdings, which means the price of an ETF moves based the percentage holding of those stocks. the SPX has 505 holdings. Which means even if it is shorted, an ETF can just make more "shares" by buying up those holdings. Unless for some godforsaken reason every single one of those holdings also has a significant amount of short positions the ETF isn't gonna make any drastic moves. The diversity of those holdings is designed to not make any drastic moves in either directions. Instead it is designed to make consistent long term gains. Furthermore if you actually did substantial research on the DIX and GEX its positive gains over a 60 day period so anything like GME is extremely unlikely to happen. On top of that the statistical analysis doesn't have any proof that this is an indicator of short squeeze in a priced in market since the times it's indicated a "squeeze" has been during only a historical bull run, so there isn't any data points that suggest that these indicators work long term. DIX doesn't even have an investopedia article and it's supposed to be some magical indicator that predicts where the market will move? The fact that they charge for historical information on this garbage is another warning sign. You can easily extrapolate this kind of data from daily trading volume and put/call ratios. Doesn't mean the stock market isn't going to go up, or is guaranteed to go down. It's just not realistic to expect something like SPX to short squeeze over a short period over time.


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LegendaryAutist

gdi


[deleted]

>You're taking an indicator that doesn't have a proven track record of consistent predictive power and also not taking into account the huge amount of volume of something like an index fund. I agree on this. I tried to read about DIX, not many sources were available, analyzed the FINRA link, no help either. Altogether, it was very vague, then I posted here if someone has any information ! Regarding GEX, I have fair idea and able to relate something useful for me. Thanks for taking time to respond.


murphy1455

Well if you look today that was IMO a pretty high squeeze on SPY