Transcription
The S&P 500 gap down at the open this morning below 6800 but quickly recovered up nearly 100 points from the lows at 6886.12, up 1.02% on the day. This came yesterday after the announcement that the US was going to begin blockading the Strait of Hormuz. You would think that this would be a negative for the market overall, especially as the tensions continue between the US and Iran, but apparently nothing is going to stop this train that we call the stock market.
The S&P continues to remain extremely resilient, looking like it's going in a straight up recovery, right back up to that big 7,000 gamma exposure. This gamma exposure has been in place since late last year. So basically, it looks like a V-shape recovery. We'll see how long the market can remain resilient in the face of these negative headlines, but so far, it's giving a lot of confidence to the US military actions that are going over in Iran, basically suggesting belief that the situation will resolve relatively soon.
We got somewhat of an indication during Friday's trading session with the volatility index actually closing below 20. Uh, we had a further decline today, closing at 1908. We see a lot of negative gamma exposure at the 18 through 20 strikes on the volatility index. Also, the 200-day EMA sitting at 1913. So the VIX right around that level as of the market closed today. Still seems some pretty decent volume between the 20 and 25 strike, but vol sellers have remained largely in control since we basically double topped here above 30, and we've now seen two straight weeks of the VIX getting crushed.
So how have we been playing this bullish momentum over the last several trading sessions? Well, if you've been watching our last several YouTube videos, you know we've got our SPX weekly income strategy, which you can follow along in our community Discord. Links in the description below. Today, we locked in another $6,525 profit on our short April 13th SPX 6750 puts. This is the second time we've locked in profits in the last couple of days, and we rolled, sticking with those 6750 puts. We rolled out to the April 15th expiration for $16.10. That gives us a little bit of cushion to the downside in the case that there is some negative headline that the market actually reacts negatively to.
And if we come back here to our 15-minute chart, I want to take a look at the contracts that are expiring over the next couple of days, and you can see most of the gamma exposure between that 6850 and 6950 strike in the contracts expiring tomorrow and Wednesday. Now, this doesn't preclude that we could have some sort of pullback, even down to the 6800 strike, but it does show you that market participants are continuing to be bullish here up through the 6950 level in just over the next couple of trading sessions.
And interestingly enough, if we just go ahead and we add Thursday and Friday's expirations, this is where a lot of the large gamma exposure is concentrated in the April 17th expiration. That's been sitting there for months and months now. It's not out of the realm of possibilities that we could see a continuation over the next four trading sessions and get back to all-time highs. I know it sounds crazy, but that would in fact be the pain trade right now, as there are still a ton of shorts out there that are scrambling to cover, especially over the moves that we've seen over the last several days.
Next, I want to take a look at a few individual names. We'll start with Robinhood. Robinhood actually popping up on our short-term bullish filter within our option flow scanner, and in particular, the 73 through the 77 calls seen a lot of open interest building over the last several days, positioning building right here in this range, and we're also seeing gamma exposure right in here between the 70 and the 80 strikes. Robinhood putting in a relative low below the 65 level just a few days ago, and we're looking at potentially the 75-85 call debit spreads expiring in the May expiration, the May 15th OPEX for Robinhood, and this actually goes right on the heels of crypto doing relatively well in general.
If we take a look at Bitcoin, Bitcoin has been hanging in there and actually just over the last few trading sessions, closing above its 50-day EMA. Over the last several months, we've seen Bitcoin trading within a larger consolidation pattern. This does look like a potentially bearish flag setup. However, the gamma exposure data has been painting a slightly different picture over the last few weeks. We've seen positive gamma exposure skewing to the upside. Right now, that 80,000 strike looking like it's getting a lot of attention. More open interest building at that strike. Currently, Bitcoin trading at 74,652. So the potential for further upside into that 80,000 strike and higher could be good for crypto in general, and could be good for names like Robinhood that have it have a heavy crypto component built in.
Another name that we've been watching closely is App. Applovin up 6.62% today, closing at 417.44. We talked about this in our live stream this morning. There's a W pattern, which often times precedes large moves up, especially when you see this double bottoming process, which is happening here on App. This is coming right at the same time where we are approaching the 50-day EMA. A break above that could provide some fuel to the upside. We see positive gamma exposure between 400 and 500, and we also see quite a bit of volume on a relative basis all the way up to that 500 strike. So we've actually taken a position recently in this name, an out-of-the-money call debit spread targeting a move up to that 500 level, but often times these patterns do precede big upside moves, and so that combined with positive gamma exposure, combined with where we are from the technical picture, getting close to that 50-day EMA.
By the way, if you guys want to track our trades in real time, you can become a member at weeks of finance.com. Can also get a sneak peek of what we're trading right now by checking out our community Discord, absolutely free. Links in the description below.
Coming back to our option flow screener, in particular, the short-term bullish names, I want to mention Aklo. Also seen some positioning in near-term expirations. The 56, 57, and 58 calls seen quite a bit of positioning building in them here. If we just take a look, we have seen somewhat of a bottoming process around the 45 level over the last couple of weeks, and gamma exposure starting to build at some of these higher strikes. This has been a name that has really been selling off throughout 2026. However, that could be ending. This was a high flyer throughout 2025, and if this starts to build momentum, we could in fact see a large move to the upside. Now, this is still below its 50-day EMA, but the potential for big upside move, breaking above the 50-day EMA and starting to get some more positive gamma exposure, we could easily see a move back up into this 80 to 100 level. Trading at around 53.96 as of the close today. It was up 7.4%. So not a surprise that it's popping up on our short-term bullish filter with all the call positioning that's been taking place over the last several trading sessions. This is a name that I want to keep an eye on. It's a more speculative play, but it does have the power to make big upside swings.
And guys, it is tax time. So we just launched our new tax season sale. You can get an additional $300 off our yearly portfolio manager tier subscription. Use code TAXES2026 at checkout. This discount's going to be ending soon, obviously. Very limited time promotion, so definitely take advantage of it while you can. Members get full access to our gamma exposure dashboard, our option flow analytics tools, as well as our algorithmic trading strategies. And you'll also get access to the premium channels in our community Discord. We've got a ton of great members in there sharing their own trade setups and strategies, and you can also track our trades in real time as we manage our options portfolio. It's a great resource. Definitely check it out when you get a chance. Links in the description below.
Thanks so much everybody for watching, and we'll see you guys in the next video.