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Friday, September 12th
“And we know that in all things God works for the good of those who love him, who have been called according to his purpose.”
– Romans 8:28
Rest in Peace Charlie
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Alex Reid’s #1 Momentum Tool Is Sitting At At 87% Success Rate… Here’s What It’s Pointing Him To Next!
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Major Market Events
- Consumer Sentiment Weakens; Dow Slips — Stocks were mixed Friday as weakening consumer sentiment weight on Wall Street
- IPO Pipeline Heats Up — Initial Public Offerings are focusing on individual investors by setting aside more shares for individuals
- Mexico, China To Speak Regarding Tariffs — The talks come after rising economic tensions between the two countries
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🤔 My Thoughts
When Options Drive the Tape: What To Take from Kane’s Gamma Map
A simple check to use before you place a trade
Yesterday on Profit Panel, Kane Shieh walked through a live gamma map.
He showed how much options flow is driving the market right now and where the big “price magnets” sit.
Here’s the plain-English version:
- Options flow is huge. Kane said about 40% of share-equivalent flow now comes from options. That means market makers are hedging around option positions all day, and price can lean toward certain strikes.
- The map points to simple levels. On SPY, the largest gamma zone sits near 660, with strong support near 640. On gold (GLD), there’s a clean pocket around 330–340. These are areas where lots of option exposure lives, so price can get pulled toward them and then slow down there.
- Regime matters. In “positive gamma,” market makers often trade against moves, which can calm swings and make levels “sticky.” In “negative gamma,” they trade with moves, which can make moves run further and break levels faster.
How you can use it:
- Start with the map, not a guess. If SPY is under 660 and the map shows a big magnet there, expect chop that leans up into that level. If we’re sliding, watch 640 as a spot where the selling might tire.
- Let price confirm. Don’t buy just because a level exists. If SPY pushes into 660 and stalls, stand down or use a tiny, defined-risk short (i.e. bear call spread). If it clears 660 and holds above it, consider a small long (i.e. call debit spread) for a base hit.
- Keep it small and defined. On first tests, use spreads so your max risk is capped on day one. You’re not trying to catch the whole move. You’re looking for a clean read and a quick target.
- Pick the right tool. GLD is fine in regular hours. If you need true 24-hour gold exposure, that’s a futures job.
- Respect the regime. If the map says negative gamma, take profits faster and keep stops tighter. If it’s positive, expect stickier levels and fewer breakouts.
Bottom line: You can add this to your trading as a simple pre-trade check, asking yourself:
- Where’s the biggest options exposure?
- Are we near it?
- What regime are we in?
Then let price prove it at the level and use tight, defined risk. No crystal ball. Just a cleaner map.
Click here to watch the on-demand replay!
And don’t forget to register your spot here to join us next time we go live!
To Better Trading,
Alex Reid
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