VolSignals

Market Makers don't manipulate price— we're trapped by our own hedging requirements. When SPX drifts between long and short strikes, our systems start buying and selling futures in ways that create predictable paths. (short thread)

@waveryder91 Wish I could retweet!

I’ve been up since 3:30 and have walked miles and miles today just listening to music and thinking. Maybe this post helps somebody, maybe it doesn’t…. But I was thinking to myself what are the most VALUABLE aspects of life that you need to actually LEARN & truly fucking (contd)

@newUSAoligarch lol

Capital efficiency, convexity, thesis specificity, defined risk. Other than that, no real benefit

@BeardoTrader “Buy em!” 🍻

A cold beer, a hot wife and a six figure trading account is all a guy really needs.

@tradewithprof And it will get worse before better as people mistake tons of data and AI tools for the training that builds skill

More attainable and yet less attained. We are democratizing access and analytical tools at record pace. Same can’t be said for actual skill.

@curtcarlson99 @GunjanJS And I’m not saying it’s easy. Many are unfortunately not equipped to navigate the traps - no fault of their own if not led properly

@curtcarlson99 @GunjanJS It can- it hurt me a while too. I did a spaces on turning 10k into 1.3m and then 0 And I’m most grateful for the epiphany I had that “wait- it’s me” because I was externalizing the cause for every negative outcome but not the positive

“Why trade options over futures?” Excellent question: Dynamism- you can tailor strategies to conditionals You think the market will go up you can - buy calls - buy call spreads - buy call flies - sell hedged calls - buy calendar call spreads - sell call ratios - sell puts - sell risk reversals Every one of those will have payoffs to upside movement with differences according to when and how the movement happens- in relation to the tenors and deltas of your longs and shorts You can structure trades that require less management When I trade 0dte flies I am taking advantage of three elements of the positioning data we have and doing so in a way that time pays me for waiting for my trade to materialize, and forgives me (via shallower intraday drawdown profiles) if it goes “out of bounds” These spreads I trade both buy and sell options- but because they are structured optimally around my hypothesis - when my hypothesis hits then I get paid 3-5x my money at risk, exactly what I want when I’m *that correct* In our last mentorship one of the guys who was only trading futures was grateful for the reduced variance

Dynamism- you can tailor strategies to conditionals You think the market will go up you can - buy calls - buy call spreads - buy call flies - sell hedged calls - buy calendar call spreads - sell call ratios - sell puts - sell risk reversals Every one of those will have payoffs to upside movement with differences according to when and how the movement happens- in relation to the tenors and deltas of your longs and shorts You can structure trades that require less management When I trade 0dte flies I am taking advantage of three elements of the positioning data we have and doing so in a way that time pays me for waiting for my trade to materialize, and forgives me (via shallower intraday drawdown profiles) if it goes “out of bounds” These spreads I trade both buy and sell options- but because they are structured optimally around my hypothesis - when my hypothesis hits then I get paid 3-5x my money at risk, exactly what I want when I’m *that correct* In our last mentorship one of the guys who was only trading futures was grateful for the reduced variance

What is the benefit of trading options over futures?

My own father saw himself as a victim of these things for decades. It got him nowhere except self loathing and missing my childhood and growth. We only finally had a relationship again once he owned his role as steward of his choices. My view is we can feel empathy for those that suffer the consequences of playing with fire, but it doesn’t really suit anyone pretending that “fire did this to them”. This is just a model for life, I don’t intend to argue it- your view is as valid as mine, just choices/values, not right or wrong

@VolSignals @GunjanJS Are there no victims of the meth epidemic? or Fentanyl? Are there no victims of gambling addiction? Or alcohol? Or Only Fans?

@curtcarlson99 @GunjanJS Then you are a victim of your own mishandling- and saying “options did this to me” avoids the responsibility typically foundational to better outcomes

@VolSignals @GunjanJS Of course you can. That's just silly.

@surfntruf This guy is 32 years old

@VolSignals I’m surprised options dealers don’t rank at the top of deadliest jobs. This sounds heart-attackingly stressful.

Market Makers don't manipulate price— we're trapped by our own hedging requirements. When SPX drifts between long and short strikes, our systems start buying and selling futures in ways that create predictable paths. (short thread)

@curtcarlson99 @GunjanJS You can’t be a victim of something which you exercise complete control over

@VolSignals @GunjanJS This is sort of victim blaming

@ot_see @GunjanJS Exactly

@VolSignals @GunjanJS Find me a trader who hasn’t had this happen … it’s called tuition

@ThousandXxx @GunjanJS Hasn’t even started!

@VolSignals @GunjanJS He's 21 and thinks his life is over. Lol.

@JamieAsks Definitely a short gamma short Volga position but managing it well makes you a better human, and the payoff is infinite… well worth the price paid in hair pigmentation

@VolSignals thank you, as a dad yourself I’m sure you know it’s not always perfect but the reward is more than worth it 🍻

We spend so much time worrying about the state of the world, but then I look at my kids and realize they’re actually good people I’m just so lucky ❤️❤️❤️

@OddStats @JC_ParetsX @StockMktTV @sstrazza Nice! Look at you back with impact🍻 Love it keep up the good work

It's happening! ▪ ADD THIS TO YOUR CALENDAR ▪ AND IMMEDIATELY DELETE IT I'll be joining @stockmkttv with @JC_ParetsX and @sstrazza on Monday morning at 9:00am ET to talk about the markets, stats, and my stupid content. Be there! youtube.com/watch?v=qFMnsU…

Profitable trading is more attainable than ever Having accurate dealer Greeks and positions, and knowing how to read them… is like sitting down at a poker table where you not only see the biggest player’s cards, but you know the rules behind his play Start here 🤝

So fantastic having the very insightful @VolSignals on @NTLiveMedia yesterday, here is what he had to say about 0 DTE's. Highly recco catching the full interview, where we covered MUCH, MUCH, more regarding how flows, the VIX and more move markets! Link to full interview: youtube.com/live/-Rwm4S7js…