We share the Weekly Gamma Bands Update by Viking Analytics. The report uses options gamma to help you better manage risk and your equity allocations.
Gamma Band Update
The S&P 500 (SPX) had sharp down days on Tuesday and Thursday, with a recovery rally to close out the week on Friday. There have been three straight weeks that the SPX has failed to overtake the Gamma Flip level, which is currently near 4,440. Our risk-avoiding model currently has an allocation of 30% to SPX and 70% cash.
The Gamma Band model is a simplified trend following model that is designed to show the effectiveness of tracking various “gamma” levels. This can conceptually be viewed as a risk along with other tools. When the daily price closes below Gamma Flip level (currently near 4,440), the