Key Delta Strike: 155 (Previous day 155).

Key Gamma Strike: 170 (Previous day 155).On July20, the following metrics for NVDA were shown in Equity Hub: An example of how I used this information to plan and execute a trade in NVDA is shown below. Please see this article for more detailed information on how I use HIRO to trade stocks.īased on this information, I develop a thesis and directional bias for the day. Market maker hedging flow can have a significant influence on order flow in stocks and is often a good confirmation of price direction. The HIRO Indicator shows the market maker hedging impact of options trades. The HIRO Signal shows how the current value compares to the most recent 5-day and 30-day ranges. The scale is shown in the legend in the upper right corner of the chart inside Equity Hub.įinally, I scan my SpotGamma watchlist for strong HIRO Signals in the first few minutes after the open and watch the HIRO Indicator for the stocks that I plan to trade. The shade of the graph indicates position size. Red indicates puts are in control, and green indicates calls are in control. The color of the graph indicates whether the options complex for the stock is dominated by calls or puts. The SG Momentum Indicator shows gamma hedging volatility. A large amount of hedging flow may be linked to the Key Delta Strike, particularly as it goes in the money. Both levels can act as pivot or pin areas. The Hedge Wall is the strike where the largest change in gamma is detected. The Key Gamma Strike is a strike where volatility may increase or decrease.

I also look at the SG Momentum Indicator for stocks that I am considering trading during the day.

I look at the Key Gamma Strike, Hedge Wall, Key Delta Strike, and other metrics for each stock and compare the values with the previous day. When I plan to trade stocks for the day, I begin my morning preparation by opening my watchlist in Equity Hub. The following is a guest post from Doug Pless.

Nvda options chart