SPX currently sitting at 6873.01, and the setup's pretty interesting here. We're in positive gamma territory with puts trading rich compared to calls - that negative IV skew is telling. What this means? Dealers are probably absorbing most of the intraday chop, keeping things relatively calm. But here's the catch: the real danger zone is a sharp move lower that breaks through the gamma flip level. That's where things could get spicy fast.
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SPX currently sitting at 6873.01, and the setup's pretty interesting here. We're in positive gamma territory with puts trading rich compared to calls - that negative IV skew is telling. What this means? Dealers are probably absorbing most of the intraday chop, keeping things relatively calm. But here's the catch: the real danger zone is a sharp move lower that breaks through the gamma flip level. That's where things could get spicy fast.