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$SPY Jumpstart: How to Read the Directionalized Volume Spot GEX Chart (From the Dealer’s View) New Learning Unlocked Via Unusual Whales In this 2 minute read, we focus on Directionalized Volume GEX, which helps us understand the trading activity of options from the dealer's perspective. Here’s how to read it: - Negative Bars: When a Directionalized Volume GEX bar is negative, it means customers are buying options (contracts) at that strike price. Dealers are shorting options at that strike. - Positive Bars: When a Directionalized Volume GEX bar is positive, it means customers are selling options at that strike price, and dealers are buying options. Key Difference: - Negative Directionalized Volume GEX means customers are long options (buying calls or puts). - Positive Directionalized Volume GEX means customers are short options (selling calls or puts). This is different from Total Volume GEX, which shows overall option exposure (without specifying whether customers are buyers or sellers). **Directionalized Volume GEX** gives us insight into which side (buying or selling) customers are on for specific strikes. How I Use This Information: By combining Directionalized Volume GEX with price action and other data points, you can gain deeper insight into market sentiment. For example: - Today, SPY has been bullish, climbing about $3 since market open. - The Directionalized Volume GEX chart shows negative Directionalized Volume GEX on strikes above SPY’s opening price of 590 (like 592 and 593). This suggests customers were likely buying options (likely calls) on these strikes. - Conversely, there’s positive Directionalized Volume GEX on strikes below SPY’s current price (like 591 and 590), indicating customers are likely selling options (possibly puts). Closure: - Negative Directionalized Volume GEX = Customers are buying options (long). - Positive Directionalized Volume GEX = Customers are selling options (short). *Key Point: Being long or short on options doesn’t necessarily mean being long calls or long puts—it can refer to either calls or puts, depending on the sentiment*. Understanding Directionalized Volume GEX can give you an additional layer of insight concerning market positioning -when coupled with themes like Total Volume GEX. By watching how these values change, you can better anticipate potential price movements and what’s driving market sentiment. Source: https://t.co/ulPF3mDdMq