SpotGamma
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We analyze options flows to see how it drives stock.
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Thursday’s selloff was driven by more than headlines. SPX broke through a sea of negative gamma, implied volatility spiked, and 0DTE support never showed up.
Here’s how dealer positioning accelerated the drop, and what we’re watching over the next two weeks:
spotgamma.com/negative-gamma…
Here’s how dealer positioning accelerated the drop, and what we’re watching over the next two weeks:
spotgamma.com/negative-gamma…
spotgamma.com The Mechanics Behind Thursday's Selloff A negative gamma selloff sent the S&P 500 down 4.4% Thursday. See how dealer hedging, rising implied volatility and missing 0DTE support fueled the drop. Yesterday the S&P 500 fell 4.36%, its worst day since 2011 outside of Covid and the April 2025 tariff shock.
Options positioning sheds light on what exactly made this such a sharp drop: entering Thursday, dealers held negative gamma to the downside. This meant they hedged their positions by selling as prices fell, and every leg lower forced more selling.
As it stands, much of that negative gamma remains tied to the Nov 20 options expiration, so big swings in either direction remain a risk.
Several major catalysts arrive between now and then. CPI (Nov 10) and PPI (Nov 13) are the next tests, and traders are already paying up for protection through both dates.
Options positioning sheds light on what exactly made this such a sharp drop: entering Thursday, dealers held negative gamma to the downside. This meant they hedged their positions by selling as prices fell, and every leg lower forced more selling.
As it stands, much of that negative gamma remains tied to the Nov 20 options expiration, so big swings in either direction remain a risk.
Several major catalysts arrive between now and then. CPI (Nov 10) and PPI (Nov 13) are the next tests, and traders are already paying up for protection through both dates.
👀 $SMH put-call skew is widening despite the rally.
You can see call skews coming in, put skew lifting
You can see call skews coming in, put skew lifting
