Disclaimer: The below information is intended to describe hypothetical scenarios and should not be considered trading or investment advice.

Basic: Reversion from HIRO Flows

Condition: Following a HIRO flow alert, which indicates higher options impact (not yet how to trade it) - watch to see if HIRO’s momentum continues or flatlines/reverses.

• If the order flow was correlated with a price increase: Once HIRO flatlines, consider buying a put spread near or at-the-money.
• If the order flow was correlated with a price decrease: Once HIRO flatlines, consider buying ATM calls or selling an OTM put spread.

Pro Tip: Equity Hub’s Synthetic OI model may help you define which strikes are most interesting for your expectations of support, resistance, or volatility.

SpotGamma flow alerts indicate substantial order flow in the underlying ticker. Our analytics indicate that when these flows shut off, the stock reverts back in the previous direction 70% of the time.

For more information, check out our videos on using the HIRO to trade:

Statistics: Check out SpotGamma’s Statistics on how our key levels have performed for the SPX using data from 2018 - 2024.

SpotGamma Alpha subscribers can exclusively access the SpotGamma HIRO Indicator inside the SpotGamma Dashboard here.

Additionally, here is a link to the SpotGamma HIRO User Guide.