Brandon Chapman booked a 195% gain today on a zero DTE spread. He knew which way the market would break before it opened.
The recent tape looked bullish. Anyone reading price action alone leaned long this morning.
Brandon read the gamma exposure map instead. That data pointed down.
Here is how the setup built. A significant level at 750 broke and carried price to 760.
The break of 760 punched through major walls and created dealer convexity. Volatility rose with price, which forced dealers to hedge by buying stock and futures.
Then price slammed into the wall at 775 and 780. Brandon had those lines drawn last week.
Price glided along 775 for three straight days. Once it finally cleared, 780 arrived in a single session.
Friday the structure shifted. The gamma exposure flipped and the cushion under the market thinned out.
This morning price sat below 776 in a negative gamma zone. The 777 strike read positive.
Negative gamma means dealers sell into weakness and buy into strength. They accelerate a move instead of dampening it.
Brandon drew one conclusion from that. A big move today would come to the downside.
In today’s video, Brandon walks through the entire trade:
- He bought the 775 and sold the 773 put vertical for $0.35, then added a second at $0.30 for an average price of 32.5 cents.
- The cheap entry gave him room to roll the spread up to 76/74, then 77/75, then 78/76 while staying inside his risk parameters.
- He sold half at $0.80 and the rest at $1.10 for an average fill of $0.95. That math produces the 195% gain.
- The 773 strike now carries roughly $2.3 billion in gamma. The 780 wall above sits near $4 to $5 billion.
- Price drifted into the close around 772.67, down nearly half a percent, exactly where the dealer map pointed.
The structure ahead matters as much as the trade behind it. This week may build a magnet that pins price near 780.
Brandon already sold a call spread up at that level. He plans to take it off at 80% of max gain or sooner.
None of this required a forecast. The gamma exposure sits there every morning before the bell for traders who know how to read it.
Brandon also gave a first look at the gamma exposure tool his team launches next week.
