Making trades using Gamma imbalance

Discussion in 'Options' started by Pekelo, Jun 12, 2020.

  1. Turveyd

    Turveyd

    You've got a year or 2 of this madness I'd bet, so trade hard and smart 10x's your account then you can make 10x's the normal amount in the quite times.

    Quite times are tricky, your risking 20 to get 20 most of the time, currently risking 20 to get 100 just jump on a move and it'll keep going more often than not.

    Trade everything like it's mad, the quite times will break even maybe slightly positive then you'll make proper money on the occasional bit of madness.
     
    #11     Jun 13, 2020
    TooEffingOld and qlai like this.
  2. guru

    guru

    That guy seems to know something, or a lot. Though he talks about mean-reversion, which may not be more common than non-quickly reverting trends that may last shorter or longer periods. He does seem to look at put/call ratio and estimate gamma, but I didn’t find his method to evaluate them. There are websites estimating and publishing such info, but their owners aren’t billionaires, if even millionaires. Last week I read about someone making a huge multi-million dollar bearish bet buying OTM SPX put butterflies. Am I correct that they’d contribute to a large put ratio but carry small weight? And who knows how many bullish vs bearish put combos are being traded just on the put side, while also increasing put ratio?
    So basically he might’ve been lucky, while his observations on how the markets move during the day vs afternoon vs overnight may work during some periods and not others. Everyone has strategies that work during some years.
    But I like the guy and he seems to know what he’s doing, including managing risk. I’m just providing some thoughts on things I’d question or at least would want to know more about.
     
    #12     Jun 13, 2020
    qlai likes this.