12/04 GEX Levels Cheat sheet + Time Spread Experiment
Important updates and recap of the last days
Following feedbacks from the 2 live trading day, we've made an update to improve the GEX experience .
CHEAT SHEET
To make it easier to navigate the complex world of GEX, we’ve added a dedicated colored arrows (▼▲) above for each expiration's NETGEX value in the Options Oscillator, corresponding to the specific HVL level. This dot also functions as a tooltip. With this feature, you can receive real-time updates on possible coming GEX profile changes, even before the NETGEX bar is updated.
For simplicity's sake:
If everything is green, the sentiment is bullish.
If everything is red, the sentiment is bearish.
If the picture is mixed, the tooltip provides guidance.
(Based on both the last known NETGEX and the current price's level relative to HVL aka gamma flip zone.)
So, we’ve enhanced the functionality of the green and red dots in the GEX Profile indicator next to HVL. These HVL dots&arrows now indicate in real-time whether the underlying stock is above or below the most recently updated HVL (Gamma Flip) level for the expiration. This is particularly useful when there's a quick paradigm shift during the day.
🟣 For example:
The NETGEX bars (volume bars in the Options Oscillator) may have been updated just two hours ago with positive NETGEX; but the red arrow (colored arrow ▼, based on spotprice <>HVL realation ) will notify you of potential changes in CALL/PUT dominance in anticipation of the next update
This provides a faster notification of any potential NETGEX level shifts than waiting for the regular update.
Time Spread Experiment: Early Observations and Insights
Let's quickly review the status of the time spreads from Monday's experiment:
Since we opened with a GAP-up on Monday, it's clear that the position with higher positive delta benefitted from this move, meaning the shorter-term expiration:
Meanwhile, the longer-term expiration is showing a slight unrealized loss:
Naturally, just as the longer-term time spread can mitigate losses, it also doesn't generate profit as quickly as a shorter-term spread would.
After only two days, it's still too early to draw any conclusions. Therefore, we will continue this educational experiment.
🔶 Tip for 0DTE Traders:
If you wish to use Renko charts intraday (for example, for 0DTE trading), we recommend using a 2-3 minute Renko chart. Our experience shows that this timeframe tends to work well.
Known Issues:
There is an ongoing issue with exotic candle types (Renko, etc) where time does not progress linearly on the chart. This creates problems with the data.
Additionally, timeframes longer than 1D (such as multi-day or weekly) can cause issues since we cannot access data from intermediate days. Therefore, we recommend using our tools for maximum 1-day timeframes and regular candles.
We know that in certain cases, the HVL can obscure individual GEX levels. In the future, we will address this and improve the readability of the levels as well.
We also want to emphasize once again that, compared to the original documentation, we now update the GEX levels of 0DTE day five times throughout the day, just like the other metrics!
I am very satisfied with your GEX indicator and am now starting the paid subscription. Thank you very much for your work.
Hola buenas tardes.
Yo opero sólo con calendarios, la herramienta es estupenda como le comenté. Traigo una petición.
El único problema que tengo con los calendarios es la iliquidez del mercado de opciones en los distintos vencimientos. De hecho al hacer calendarios, la liquidez de los vencimientos semanales es mucho menor o a veces inexistente, es por eso que sólo hay liquidez para hacer calendarios en las acciones grandes tipo AAPL, AMD, AMZN, NVDA, GOOGL, MSFT, META y no mucho más.
Esto es que los vencimientos mensuales sí tienen buena liquidez, aunque sean algo más lejanos 2, 3 meses, por ejemplo, pero sin embargo, los vencimientos semanales sólo tienen liquidez en el mes más próximo a la fecha actual, a partir de 1 mes de distancia temporal, no hay buena liquidez, ni en las acciones anteriormente citadas en vencimientos semanales.
La petición es si podrías indicar al lado, en el indicador GEX, una columna que indique el nivel de liquidez, por ejemplo numérico como hace TASTY, pero teniendo en cuenta los vencimientos semanales, es decir, básicamente, acciones en dónde se puedan hacer calendarios sin problema de liquidez. Gracias de antemano.
Saludos.