Research

Options Flow Trading: More Noise Than Signal

Options Flow trading has gained popularity in recent years, with various sites and tools attempting to capture and analyze the data. For multiple years, options flow data and option sweeps were something that we tracked in the Trader’s Thinktank. However, after tracking this data for 6+ years, it's clear to me that options flow and option sweeps have lost the edge they once provided. There are significant reasons why following the options flow is no longer worth your time.

The Ultimate Guide to Crafting Trading Watchlists

A watchlist is a trader's tool, carefully curated to spotlight a select group of stocks amidst the vast sea of market options. Its primary mission? To sharpen a trader's focus, standing as a sentinel of readiness for rapid responses when trade signals flash on the screen. In an environment where stocks can trigger buy and sell signals simultaneously, a watchlist acts as a pre-emptive strike, eliminating the potential for delays that could result in missed opportunities. By homing in on a concise selection of stocks instead of attempting to monitor the entire market, traders dramatically improve their odds of capturing early moves, rather than scrambling to chase trends that have already taken flight.

What is the Swing Trade Radar? Swing Trade Option Alerts

Due to the nature of fast-paced markets, having access to reliable trade setups and valuable insights can make all the difference. Unfortunately, staying on top of developing setups and shifts in price action can require hours and hours in front of the screens, and multiple scans per day. This is where the Swing Trade Radar subscription service steps in.

Gamma Exposure (GEX), Gamma Levels, and SPX 0DTE - What You Need To Know

Unraveling the Relationship Between 0DTE Options Trading, Gamma Walls, and Market Volatility. Explore the interplay between these two key factors shaping the stock market landscape, and gain insights into their combined impact on trading strategies and market dynamics.

Gamma & Gamma Exposure - What Traders Need to Know

“gamma is one of the larger sources of non-fundamental economic activity in global markets. Market makers who delta-hedge their option positions are economically driven to trade substantial amounts of underlying shares or futures, strictly as a result of the price of the underlying itself changing, not as a result of fundamental news and without regard to the liquidity available. As a result, gamma can cause markets to overreact to fundamental news (short gamma) or too under-react to fundamental news (long gamma).”

What Happened With Robinhood? Unpacking the WallStreetBets Rebellion

Where do we begin? First of all, Robinhood was not the singular brokerage restricting buying in Gamestock (ticker symbol $GME) and the variety of other stocks that had restrictions placed on them. I personally use a direct access broker, and noted within the Trader’s Thinktank® that on Monday (1/25/21) they had rejected all options orders in GME. Much of what is discussed in this article will apply to most brokers. That being said, I’ll be using Robinhood in this article because they are the notable broker involved in this fiasco.