What does the Volatility Trigger mean?
Volatility Trigger is our proprietary indicator which detects at which level options market makers position shifts from positive gamma to negative gamma.
Why does the Volatility Trigger matter?
If the stock is under this price level option market makers hedging flows shift from supporting market prices and suppressing volatility, to trading with market prices and expanding volatility.
How to use the Volatility Trigger?
This level is an important support and resistance level. If the stock is below this level you can anticipate high market volatility. If the stock is above this level we anticipate lower volatility and a more stable stock price.