Condition: When there is a flatline in the HIRO indicator at a proprietary SpotGamma resistance or support level, trading opportunities exist to capitalize on a price reversal.

• If the order flow was correlated with a price increase: Sell 0DTE call spreads above the Call Wall when the stock approaches it, or potentially buy put spreads with your short strike at the Call Wall. 
• NOTE: By placing your short strike of a put spread at the Call Wall, you add net positive gamma to market maker positioning, and your max profit point at expiry sits at that strike, should price fade back to the Call Wall.
• If the order flow was correlated with a price decrease: Sell 0DTE put spreads below the Put Wall when the stock approaches it 

Pro Tip: Check the difference between short-dated and longer-dated options flows using the Next Expiry toggle at the top of the chart. Major long term options flows are more impactful in the future, while 0DTE or next expiry flows generate a larger current dealer hedging impact.

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.