04.19.22 | Gamma Exposure … Juiced Today

GEX ballooned today.   In weeklys, traders were selling OTM puts.   In monthlys, premium was high in ITM calls sold.   Options sold increase GEX and lower volatility.   $VIX down 6% in 2 days.   $VVIX down 7.7% over the same period.   $VVIX is a good predictor of future $VIX realized variation.

The dark liquidity index remains in accumulation mode.

I should note that while today’s weekly options activity portray a relatively bullish sentiment … the June-July ITM calls sold (image above) probably represent institutional hedges against expectations for short-term downside.