$SPX opened at 7,595 this morning — right in the flip zone between 7,555 and 7,604. Dealers are near neutral here, so the market has to do its own work.
The setup is clean. Above 7,604, positive gamma kicks in at 7,625 (+$17M), 7,700 (+$47M), and 7,800 (+$45M). That's where the magnet sits if we hold the breakout.
Below, it's still ugly. The 7,500 strike is carrying -$193M — the heaviest negative gamma on the board. Then 7,525 at -$90M and 7,550 at -$26M. Net gamma was -$651M at yesterday's close, so the index is sitting on a trapdoor if it falls back through the zone.
Tuesday's flow was constructive — calls at 7,550 through 7,700, puts stacking at 7,400–7,500. Put/call volume was 1.38. ATM IV at 16.2% says nobody's pricing drama yet.
The line is 7,604. Hold it and we grind toward 7,700. Lose it and 7,525 is the first real test, with 7,500 underneath that. Range today: 7,520–7,670.
The setup is clean. Above 7,604, positive gamma kicks in at 7,625 (+$17M), 7,700 (+$47M), and 7,800 (+$45M). That's where the magnet sits if we hold the breakout.
Below, it's still ugly. The 7,500 strike is carrying -$193M — the heaviest negative gamma on the board. Then 7,525 at -$90M and 7,550 at -$26M. Net gamma was -$651M at yesterday's close, so the index is sitting on a trapdoor if it falls back through the zone.
Tuesday's flow was constructive — calls at 7,550 through 7,700, puts stacking at 7,400–7,500. Put/call volume was 1.38. ATM IV at 16.2% says nobody's pricing drama yet.
The line is 7,604. Hold it and we grind toward 7,700. Lose it and 7,525 is the first real test, with 7,500 underneath that. Range today: 7,520–7,670.
