Wall of Worry [PUTS] on the S&P 500 (Patreon)

The number of put options at the $SPX 4050 strike price is quite massive. If the price experiences a significant downward movement, it could potentially lead to further declines. The market has tested this level three times before and appears to be heading towards a fourth attempt. The question remains whether this barrier will hold or break, and we will have to assess the situation based on how the market closes.

Gamma is a measure of the rate of change of an option's delta in response to changes in the underlying asset's price. The total gamma of the S&P 500 would be the sum of the gamma values of all the options contracts on the index, which would require access to real-time options data.

This is my chart, we are knocking on the door of 4050, trend is down, mean reversion is happening but no clear sell signal yet on Confluence. I was waiting for the upcoming 4200 to hedge as I upped it from 4100 but looks like I may have missed by 25 pts. 

Will watch carefully. 

This may or may not be the start of a new bull market, but one thing is clear: Sentiment has now flipped back to the bullish side—38% of the American Association of Individual Investors are bulls, only 25% bears. Woohoo