GOOGL: Scaling the Gamma Ladder – Key Levels $ Strategies Tomorr
Updated
Gamma Exposure (GEX) Levels and Price Action:
1. Key Levels Identified:
* Highest Positive NETGEX (Call Resistance): $180
* A major resistance zone where price could face selling pressure or consolidation due to significant gamma positioning.
* 2nd Call Wall: $185
* A crucial level acting as the current resistance. Any breach above this could open the door to test $195.
* 3rd Call Wall: $195
* An upper resistance zone representing a high gamma buildup that could restrict further upward movement.
* HVL (Hedging Volatility Level): $167.5
* A dynamic support level, indicative of gamma-driven price attraction and likely to act as a near-term support.
* PUT Walls:
* 2nd PUT Wall: $160
* Moderate support, representing hedging activities around this price level.
* 3rd PUT Wall: $155
* A strong defensive zone with substantial put hedging activity, suggesting buyers are likely to step in if tested.
2. Price Action:
* GOOGL is currently trading at $185.77, near the 2nd Call Wall. This level is critical, as a breakout above it may lead to momentum toward $195. Conversely, failure to hold $185 could result in a retracement toward $180.
Technical Indicators Analysis:
1. MACD:
* Positive crossover with rising momentum, indicating bullish sentiment. A continuation could support a breakout above $185.
2. Stochastic RSI:
* In overbought territory, signaling caution for potential consolidation or pullback.
3. Trendlines:
* An upward-sloping trendline aligns with $180, providing strong support for any retracement.
Options Strategy Plan:
1. Bullish Scenario:
* If GOOGL breaks above $185:
* Call Option Entry: Strike price at $190, expiration 1-2 weeks.
* Target: $195 (next resistance level).
* Stop-Loss: $182.
2. Bearish Scenario:
* If GOOGL fails to hold above $180:
* Put Option Entry: Strike price at $175, expiration 1-2 weeks.
* Target: $167.5 (HVL level).
* Stop-Loss: $183.
3. Neutral Strategy:
* If GOOGL consolidates between $180 and $185:
* Iron Condor Strategy:
* Sell a call at $190 and a put at $175.
* Buy a call at $195 and a put at $170 to cap risk.
Recommendation for Expiration Date:
* Short-Term Expiry (1-2 weeks): Ideal for trading around key gamma levels.
* Longer Expiry (2-3 weeks): Allows for flexibility in case of delayed price reactions.
Summary of Gamma Insights:
* The $185 level is pivotal, aligning with the 2nd Call Wall and acting as immediate resistance.
* The $180 level serves as a solid support backed by gamma positioning, while $167.5 (HVL) is the ultimate fallback support.
* A breakout above $185 could drive bullish momentum to $195, while a failure to hold this level may result in consolidation or retracement.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always perform due diligence and consider risks before trading.
1. Key Levels Identified:
* Highest Positive NETGEX (Call Resistance): $180
* A major resistance zone where price could face selling pressure or consolidation due to significant gamma positioning.
* 2nd Call Wall: $185
* A crucial level acting as the current resistance. Any breach above this could open the door to test $195.
* 3rd Call Wall: $195
* An upper resistance zone representing a high gamma buildup that could restrict further upward movement.
* HVL (Hedging Volatility Level): $167.5
* A dynamic support level, indicative of gamma-driven price attraction and likely to act as a near-term support.
* PUT Walls:
* 2nd PUT Wall: $160
* Moderate support, representing hedging activities around this price level.
* 3rd PUT Wall: $155
* A strong defensive zone with substantial put hedging activity, suggesting buyers are likely to step in if tested.
2. Price Action:
* GOOGL is currently trading at $185.77, near the 2nd Call Wall. This level is critical, as a breakout above it may lead to momentum toward $195. Conversely, failure to hold $185 could result in a retracement toward $180.
Technical Indicators Analysis:
1. MACD:
* Positive crossover with rising momentum, indicating bullish sentiment. A continuation could support a breakout above $185.
2. Stochastic RSI:
* In overbought territory, signaling caution for potential consolidation or pullback.
3. Trendlines:
* An upward-sloping trendline aligns with $180, providing strong support for any retracement.
Options Strategy Plan:
1. Bullish Scenario:
* If GOOGL breaks above $185:
* Call Option Entry: Strike price at $190, expiration 1-2 weeks.
* Target: $195 (next resistance level).
* Stop-Loss: $182.
2. Bearish Scenario:
* If GOOGL fails to hold above $180:
* Put Option Entry: Strike price at $175, expiration 1-2 weeks.
* Target: $167.5 (HVL level).
* Stop-Loss: $183.
3. Neutral Strategy:
* If GOOGL consolidates between $180 and $185:
* Iron Condor Strategy:
* Sell a call at $190 and a put at $175.
* Buy a call at $195 and a put at $170 to cap risk.
Recommendation for Expiration Date:
* Short-Term Expiry (1-2 weeks): Ideal for trading around key gamma levels.
* Longer Expiry (2-3 weeks): Allows for flexibility in case of delayed price reactions.
Summary of Gamma Insights:
* The $185 level is pivotal, aligning with the 2nd Call Wall and acting as immediate resistance.
* The $180 level serves as a solid support backed by gamma positioning, while $167.5 (HVL) is the ultimate fallback support.
* A breakout above $185 could drive bullish momentum to $195, while a failure to hold this level may result in consolidation or retracement.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always perform due diligence and consider risks before trading.
Trade active
GOOGL is currently hovering near the 195 resistance level, which aligns with the 3rd call wall. If it fails to break and hold above this level, a pullback toward the next support at 192.5 or 190 could be expected. However, if volume strengthens and the stock clears 195 decisively, it may target the higher GEX zones around 197.5 by the end of the day. Keep an eye on price action and volume near these critical levels for further confirmation.
Disclaimer
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