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 a strong rally last Thursday and Friday to close the week above our calculated gamma flip level. The gamma band model began the week with a 100% allocation to SPX. The gamma flip level can be viewed as having served as resistance; once it was broken, the market moved meaningfully higher,.
The Gamma Band model is a simplified trend following model that is designed to show the effectiveness of tracking various “gamma” levels. This can be viewed conceptually as a risk management tool. When the daily price closes below Gamma Flip level (currently near 4,415), the model will reduce