I’ve been having success mostly with VWAP and basic EMA and Support/Resistance when trading stocks or options.
Everyone is saying to monitor GEX levels. Decided to look into this but getting conflicting info.
From what I understand, market makers are usually long calls and short puts.
So if price is heading down, the market maker needs to short more of the underlying, this makes sense.
But if they are long calls, why do they short the underlying when price goes up and buy the underlying when price goes down. They are long calls so they make money when price goes up. Shouldn’t they just need to short the underlying when price goes down.
Now also there is conflicting info about what happens with these max GEX calls and puts walls.
Price hits the call wall, and pulls back a little and then breaks thru it, only 1 hour later to go under this call wall.
Same with put walls. Price hits it, small bounce, and then it breaks down thru the put wall, only to reverse a little while later.
So what is the benefit here? It’s like a coin flip whether price will actually be resistance at a call wall and support at a put wall.
I asked Grok and ChatGPT and they don’t even know how it works and giving me conflicting info.
You got these subscriptions which print live GEX levels for like $100 a month. I’m assuming if they actually helped they would charge $5000 a month and people would pay.
Sometimes they do work. Like yesterday for NVDA, massive OI at the $190 strike, expiry Jan 2. And would have been an amazing trade.