See the trades they don’t want you to see.
Block trades · Dark pools · Dealer gamma · Market-maker footprints. Uncovered daily.
What is this site about?
Turn the Tables on Market Makers
Feel like you're getting stopped out all the time? Feel like the market is out to get you? Have you blown accounts?
Yup. Been there, done that! LOL. We all know about Open Interest, Fibonacci, oscillators, and Trend lines. But y'know, there is still a piece of that puzzle missing!
That piece is Market Maker behavior ... bad boy, bad boy!!!
This site is about giving my fellow traders some EXTREMELY POWERFUL TRADING TOOLS to give traders a higher conviction and confluence when trading.
I'm here to shed some light on how to expose their indifference to your depression and hopelessness, and turn the tables on Market Makers to use their hedges to YOUR advantage ...
Woah! Is that really possible? Can we beat Market Makers at their own game?
Believe it or not, you can join Market Maker momentum as they hedging the OPPOSITE of every trade! Yes, these levels are often known in advance!
CLICK HERE TO LEARN HOW THIS WORKS!
understand hedging. then take the "house" trades!
Market Maker Hedging Explained
Picture this:
Stock X has a massive combined options position at $100, and the market price is only $90. That huge $100 depository of options has gathered all the gamma value of all those options into one price level - It's like setting an electromagnet in a bowl of steel nails.
Retail traders are buying calls to take advantage, but Market Makers are selling those calls to retail.
Well, Market Makers' short Call options are LOSING MONEY in an up-market, right? Market makers don't make money from directional trades, but from the arbitrage in the bid-ask spread of all these trades.
Instead, their goal, is to stay directionally, or "delta", neutral. Since THEIR short call options are losing money in this up-trend, they have to buy shares of Stock X, to make money too! Not only do they have to buy shares, they need to buy ENOUGH shares to offset or neutralize the loss on the short call option position. This is called Delta Hedging.
Believe it or not, the levels that Market Makers tend to ramp up this hedging activity are often known in advance. This delta hedging activity accelerates around option strike prices with high open interest. So, if market price gets to, say $98 on our Stock X, that huge pool of gamma at $100 will often suck market price right up to that level.
Now, on the flipside of this delta hedging, is when retail starts to take profits at the $100 Price Target. The Market Makers have to buy those calls back to close the positions. But, what do they do with all those shares they just bought?
Yup! They have to sell those shares - potentiating a strong price reversal under this massive $100 options open interest where those positions are starting to close to take profits. You will hear retail traders call this a "rejection", but what this REALLY is, is what is referred to as an 'un-winding' of market maker delta hedging activity - something that you can now anticipate (with the right tools)!
Don't fight the market. Just understand it. Once you understand what is really happening during a breakout (often market maker delta hedging causing buying or selling pressure), or a rejection (could be market maker unwinding), then you can simply take the same direction trades - you'd be trading with the House!
STEP #1: Find SMART MONEY Trades in REAL-TIME!
Real-Time "Smart Money" Trades
Find trade ideas for optionable tickers, unusual options activity, or strong momentum trades.
Imagine not having to have "insider information" but still be able to profit from large Unusual Option Activity (UOA).
Now, don't go taking just any trade blindly. Keep in mind some option flows are hedges. So, next we will need to find supporting evidence to give us CONFLUENCE for HIGH CONVICTION trades!
Learn More
Real time option flow used to be for professional institutional investors. Now, these "Smart Money" trades are now available for the public to see. These option flows are shown in real time - imagine taking the same institutional trades when THEY do!
Step 2: See Where Market Maker Hedging Levels Are
The Missing Piece of the Puzzle
While most of us are familiar with Fibonacci levels, areas of supply and demand and support or resistance levels, we can still by 'mystified' by seemingly un- predictable reversals or consolidations.
What if I told you that they CAN be predicted?
That missing puzzle is Market Maker hedging. NO, not trimming your yard hedges. Y'see, on the end of every trade you make, is the Market Maker taking the opposite trade. If retail and institutional traders are making money, Market Makers are losing money!
So, to reduce or "hedge" those losses, they have to buy or sell shares to remain market neutral, instead of on the losing side. Believe it or not, those Market Maker behaviors result in levels that can sometimes (often) be predicted! I'll show you how.
Learn More
Option Dealers with huge positions show up on SpotGamma's Trace map. When market price rises into their position, they monetize the position by selling futures. This selling pressure drives the price back down. Then, they buy futures and keep doing this all day to maximize profits on their large gamma position, before finally closing the position toward expiration. This "gamma hedging" explains why price will appear to flip flop around a certain price point.
Step 3: Confirm Your Trades with Proprietary Indicators
A Little Bit o' Hand Holding!
While many advanced traders can simply look at price and volume, there are some of us that need a little more assistance in interpreting trends and probable, but never guaranteed, outcomes.
I will show you some extremely valuable custom indicators that will give you the CONFIDENCE to make more intelligent decisions about your trading and investing.
Learn More
InsiderFinance technical indicators are great for beginners and experienced traders alike. The proprietary algorithm determines trends, reversals, entries, stop losses, and take profit levels for you!
Contact Us
Have a Question?
You can use the on-site messaging system, or email Ryan at:
admin@blockstoxx.com
