BIG Quadruple Options Expiration today with 4400 (440) as the dominant strike, with an expected “pinning” near this level. As posted in the PTG Trading Room yesterday: “PTGDavid :(12:59:33 PM) : They going to pin 4400?”
Learn more about Options Expiration from the “Gamma Guys”…Spotgamma.com
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Prior Session was Cycle Day 1 (CD1): Decline for CD1 was shallow and once price tagged TTT Level reversal unfolded and it was “rally-on” for the remainder of the session, fulfilling the Gamma CALL WALL (4400) objective. As posted in the PTG Trading Room yesterday: “PTGDavid :(12:59:33 PM) : They going to pin 4400?” Prior range was 86 handles on 1.218M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for CD2 would be ‘back n fill” consolidation price action to balance out prior session’s rally. Quadruple Options Expiration today is expected to be the main driver of price action with more than 1/3 of the total S&P/QQQ options expiring today according to the “Gamma Guys.” As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4365, initially targets 4395 – 4405 zone.
Bear Scenario: Price sustains an offer below 4365, initially targets 4345 – 4340 zone.
PVA High Edge = 4382 PVA Low Edge = 4324 Prior POC = 4356
Range Projections and Key Levels (ES) June 2022 (M) Contract
HOD ATR Range Projection: 4481; LOD ATR Range Projection: 4277; 3 Day Central Pivot: 4302; 3 Day Cycle Target: 4230; 10 Day Average True Range 117; VIX: 26
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Expected price influence today will be the very large quarterly options expiration. Prior range was 313 handles on 496k contracts traded. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustain a bid above 13970, THEN initial upside estimate targets 14010 – 14063 zone.
Bear Scenario: IF Bears sustain an offer below 13970, THEN initial downside estimate targets 13945 – 13940 zone.
PVA High Edge = 14003 PVA Low Edge = 13845 Prior POC = 13970
Range Projections and Key Levels (NQ) June 2022 (M) Contract
HOD ATR Range Projection: 14465; LOD ATR Range Projection: 13572; 3 Day Central Pivot: 13702; 3 Day Cycle Target: 14322; 10 Day Average True Range: 500; VIX: 26
Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.
Stay Focused…Non-Biased…Disciplined ALWAYS USE STOPS!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”
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