This is a new feature that I’ve been exploring so I only have the backtests to show for it however on my longer term accounts (& to help inform my day trades) I have been basing SPX options selling off of delta correlations which has helped a lot but it’s not the same thing as this new find.

Total gamma, vanna and charm mean different things when they are negative and positive. For instance, if the total gamma is negative, it usually indicates periods of extreme volatility. While those are useful for correlations which I discuss in my other dealer positioning dashboard video, they are more useful when looking at individual strikes for gamma and vanna and things like dealers market diary for charm

I don’t think so as of yet but I believe they plan to add that feature soon which would be the icing on the cake!

@@FattyTrades That would be awesome!!!! Another tool in the toolbelt. Share a tweet when you see it come out so we don't miss it!!!

Will do!

I always pair it with ICT price action concepts. I’ll make a video about a couple setups soon I look for with this stuff that can work on the time frame of your choice. For example, I had posted on Twitter how SPY’s dealer positioning as of Wednesday night looked primed for a bearish drop going into the PPI catalyst on Thursday. ES futures that morning formed this exact setup that I missed after sweeps to the short side prior to PPI. Then once market opened, all those imbalances that were left behind pre market were now the targets after the NY open & I was able to capitalize after the ES NY open, then rinsed and repeated for the afternoon on NQ. This usually happens 2-4 times a day & all you need is one. I like Vanna with VIX & charm for overall sentiment then SPY/SPX gamma levels are referenced, even though I trade ES, since the largest GEX levels are typically reversal points for this setup. 1. Liquidity get taken (run of buy/sell stops). 2. Displacement clearing out a old low/high in the opposite direction (FVG with CHoCH). 3. Plot PDA with fibs for latest swing structure. 4. Pullback into OB/BB or FVG (4m time frame or lower) - compare correlated assets for extra confirmation (ES/NQ/YM) 5. Pyramid entires in premium or discount zone using new FVG’s/OB’s 6. Seek volume imbalance, voids, weekly/daily gaps, previous highs/lows, etc. as target.

Great find! 350% on 15day momentum is epic. Thanks for calling this out. As far as gamma/vanna correlation is concerned, it simply means that there will likely be more significant areas of interest in the form of positive/negative vanna/gamma but we still have to view the GEX/VEX to figure out where and the exact dealer impact at certain strikes. The reason is because the more delta hedging there is, the more those same deltas need to be hedged/de-hedged as they change due to gamma, vanna and charm.

holy moly thats insane bro

Nm, you answered the last question

It seems to be most effective on any assets with the most options activity. You can use the options and stock options pages on Tradytics that show the market as a whole to get an idea of which assets are getting the most contracts. As far as the second question is concerned, the overall correlations are seem to be more effective than the dealer positioning itself. The exception being when you look at gamma and vanna on specific strikes to see where their hedging requirements really take effect.

When looking at net flow it’s likely showing retail or institutional buying, since dealers are the one providing the liquidity/options contracts for purchase. Since it’s measuring OPRA data it’s showing the opening of those contracts and closing. They are typically purchased from dealers, however there is some speculation that dealers have started using 0 DTE contacts to hedge their requirements in certain cases but the general assumption is that it’s largely institutional speculation or hedging, not dealer hedging since they make money from the exchanges/brokers to sell those contacts. AlgoFlow simply combines net calls and puts and shows the net impact of the two. AlgoFlow came first then Tradytics decided to break out calls/puts which is now shown as netflow.

@@FattyTrades Thanks for the explanation and reply. but is this always the case with algoflow vs Netflow-for example if you go on flowline now for NFLX and select either the 1 day flow with 7 day expiration or 1 day flow with 15day expiration for NFlx, the netflow looks bullish while the Algoflow icon within the net flow has a red circle dot/icon indicating bearish- is there any reason you can think of why there would be a difference between the two?( algoflow being bearish and net flow looking bullish and both not in the same direction?)

@@31wolram if look at the Y axis on the right and look at both put amounts and call amounts, AlgoFlow should just be showing the net difference of these two along the way. In some cases calls might look greater than puts in net flow but if calls are declining and puts are increasing, AlgoFlow will reflect the net difference as bearish for example. It’s just another way of viewing the same data. I just checked the 1 day, 7 DTE and 15 DTE AlgoFlow and net flow example on NFLX & they look the same to me with call premiums being higher but NFLX price plummeting.

@@FattyTrades thanks for the explanations, dedication and always replying. Much Appreciated

The momentum is calculated by subtracting current day by whatever day you select in that momentum value. For some assets it’ll lead to better returns, sometimes the default 15 day is best, other times 5 days or 30 days could be better. Thankfully the back tester is built in to quickly compare but any asset you review, I recommend trying all of them and see how it impacts the returns on that particular asset. As you saw with Microsoft, 15day momentum outperformed raw delta’s flipping but that’s not always the case, from what I’ve seen it changes dramatically from asset to asset.

@@FattyTrades for forward-looking does the days matter. Can we use percent of return from back testing to inform what days to use for forward-looking?

It logs everything in 30 minute increments from the dealer perspective. So if something like happens you would see the dealer positioning rapidly shift and then you could adjust. I believe Tradytics is adding alerts to the feature soon too.

@@FattyTrades Thank you ❤️

No that’s as far back as the data goes on the platform.

True I’m not quite sure what it would be. It could also be how heavily dealers are involved in that asset. Some are more “manipulated” than others. Was actually surprised to see the weak impact dealer deltas had on MSFT compared to other S&P top assets.

I plan to revisit the list soon but these are the best ones I had found. Can you fill me in on your experience with which ones weren't working? twitter.com/Fatty_Trades/status/1622641879668891648

Yeah MSFT doesn’t seem to have the same response to Dealer activity like many others. Here’s all the plays I’m currently tracking with great correlations. I’m with you on TSLA, it’s basically it’s own beast… twitter.com/fatty_trades/status/1622641879668891648?s=46&t=xl7PSgsoyAifVJQH6gAvZg I’ve been selling puts very heavily on UVXY since I noticed the correlation and the momentum change. It’s been very good these past two weeks and I’m feeling good about it. Def use this stuff for share buying/selling or options selling, wouldn’t recommend doing it any other way.