Career SPX market maker. See how options move markets with VS3D™ by VolSignals— the only dealer hedging flows platform built entirely by market makers.
Naples, FL
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Market Makers don't manipulate price—
we're trapped by our own hedging requirements.
When SPX drifts between long and short strikes, our systems start buying and selling futures in ways that create predictable paths.
(short thread)
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NFP on deck
$41.50 straddle
what is this position telling you?
We'll cover it all live in today's VS Pro morning meeting-
starting 8:25 am et
so we can predict and analyze the reaction in real time
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To join and listen live, daily (and get access to all of our intraday commentary, pricing tools, workshops and research)
-> volsignals.com/vs-pro
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VolSignals retweeted
sometimes you just have to pay dollars through the ask
SPX 8/31 7000/ 7900 STRANGLE
"Customer" (wink) pays $81.00 on 14k
that's over 20mm Vega
that'll make the VIX spike
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egg, face.
face, egg.
now that the pleasantries are over-
VIX EXPIRATION IS 7/22
ignore my point about 7/15
be on guard during OPEX week
but the pressure I'm looking for is 7/22
(thanks @acemoney21 ~ miss you pal)
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This is how you should be reading your options hedging data
it's grounded in the way our hedging models actually work
first- posted at 11:17am et
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Midday comments on the price action
-recorded at 12:50pm et
loom.com/share/419cb14dc7074…
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Brent, you know what we're waiting for...
7/15
Yes, COR1M is signaling spasms.
The elevated single stock primarily tech names are at a massive divergence to the S&P index options.
I don't think it snaps before the long weekend, but it is something that I think is served up soon. History shows <=14 days.
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VolSignals retweeted
If you're struggling to find edge trading with dealer hedging flow data
just read this and ask questions
This is the basis of a trading framework I use in my own trading, and to teach how to read and trade around the dealer profile in VS Pro each day.
The dealer positions give us ranges within which there should be an observable bias.
I use the range endpoints as entries and exits.
I use the balance points as targets for my trades, which usually have a directional component and an options selling component (I buy flies around my target)
Today's framework (the notes above) said:
7425 through 7470 is the PRIMARY RANGE
- This implies consolidation and potential pinning behavior at 7450
Cross above 7470 = bias FLIPS, pointing to new target
(there's actual flow behind the dealer's hedging model that enforces this behavior.. we are just "riding currents")
In the upside range defined by 7470- 7500, the balance (target) is 7490-7495
7500 is the UPPER BOUND of the upside range- if we cross 7500 here then the profile shifts again.
Look at the intraday price behavior again, after taking a minute to digest the framework I just explained- it's this reply's first image.
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VolSignals retweeted
"0 effect on the market"
If only there was someone who could have told you this exact thing was coming.
Weeks before the banks and financial press told you it was coming.
And not requiring you to be an ultra HNW client spending hundreds of thousands annually in fees.
If only.
@return2mean
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VolSignals retweeted
JP Morgan's Sep Quarterly Put Spread collar:
JHEQX Buys 24.8k of the 5990 / 7090 Put Spread to sell the 7890 Call
Trades for a net price of $0.45 (fund pays)
hedged against 11k of today's 6865 Calls
delta = -41 this time around
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Collar day
Last day of quarter
Pension rebalancing flows
- let's see if our VS3D framework
gives us any tradeable levels today anyways.
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Whether SME or SPX, the JPM collar creates the same hedging needs for the market maker tasked with dynamically managing the other side of their trade.
And this video covers it front to back–
piped.video/watch?v=bcYUoSpc…
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If only there was someone who could have told you this exact thing was coming.
Weeks before the banks and financial press told you it was coming.
And not requiring you to be an ultra HNW client spending hundreds of thousands annually in fees.
If only.
@return2mean
Something "Unprecedented" Is Taking Place Below The Market's Calm Surface zerohedge.com/markets/someth…
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Make sure you follow us on Youtube.
...all I'm going to say for now.
piped.video/@VolSignals
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