Gamma “Call Wall” At 3,600 Means Dealers Will Sell S&P Breakouts
Mon, 11/16/2020 – 08:41
Usually dealers are blamed when they are in a negative gamma position and are forced to sell down risk during sharp market drawdowns, thereby accelerating market drops. Well, this time it’s the opposite: with stocks attempting to stage a breakout above 3,600, it will be the dealers that hold the S&P back, due to a peak gamma position which our friends at SpotGamma calculate is at 3,600.
In their morning note, SpotGamma writes that its 3600 target appears to have been achieved as futures are markedly higher at 3615 on the back of the positive Moderna news.
Join our Telegram channels
- All Headlines: t.me/LiquidaryNewsRoom
- Finance Headlines: t.me/LiquidaryFinance
- Liquidary Insiders: t.me/LiquidaryInsiders
- Crypto Headlines: t.me/LiquidaryCrypto
- Politics Headlines: t.me/LiquidaryPolitics
Join our Telegram group ➡️ t.me/Liquidary
Follow us Twitter ➡️ twitter.com/liquidary
Find the full article here