Khvatov Nikita

Options trader, ratio spreads & gamma, posting real trades

[Khvatov Nikita @khvat]

@mikealfred Mike, please explain the mechanics? Aren’t they delta neutral every time? Thanks.

[SpotGamma @spotgamma]

Consider yourself warned.

[Khvatov Nikita @khvat]

I guess, I found the answer.

Flow 1. Institutions sell calls and buy puts on an indexes as a part of a structured products , JP collar. MM buys calls - positive delta, short the underlying to stay delta neutral. Since AI stocks like $AMD are part of indexes, when mm shorts indexes, stocks are being sold.

Flow 2. When retail and other customers buy calls on ai stocks, mm sells calls and buys stocks as a hedge.

Two different flows currently net out each other .

In case something happens and market goes down, puts that are sold by mm increasing in delta which make mm to short underlying ( indexes, SPY, etc) . Also, calls that were bought by customers will be loosing delta which will make MM unwind the hedge selling the stocks.

It’s gonna be a double selling pressure from dealers.

[Khvatov Nikita @khvat]

@spotgamma Why that huge divergence can be a problem? Customers are long gamma on AI tickers, institutions are short gamma on indexes. That’s been like that for the last 2 months, nothing happened. I’ve been waiting gor a correction for so long, never came. Brent, please explain. Thanks

[The Salty Doc @saltydocEM]

Most bullish chart on X.

[Khvatov Nikita @khvat]

@SenWarren Capital belongs to ones who create value , not the way around. If you seize dough from a baker you won’t get a pie to share.

[Not Jerome Powell @alifarhat79]

The wealthiest people in the world (updated)

[Barchart @Barchart]

CTAs are projected to sell stocks in EVERY SINGLE SCENARIO over the next week 🚨🚨

[Khvatov Nikita @khvat]

@prostotak182 MCR

[Khvatov Nikita @khvat]

Most people think they were fired by their employer. In reality, they were fired by society — by the economy. Their services are no longer needed. Society is no longer willing to pay for their work, for one reason or another. It sounds harsh, but that's the brutal truth.

[Khvatov Nikita @khvat]

@AOC If you really want to help regular people, see why any kind of risk is overpriced in the US, and why the economy is extremely leveraged. Understanding of these two things can dramatically improve people’ lives. And please read Milton Friedman s seminal works.

[Khvatov Nikita @khvat]

@MikeLongTerm @Citi @AMD Why didn’t they say this back in February?

[2020Links @2020Links]

Homework

@jam_croissant
@Stocktwits

https://t.co/YVYM46EWvx

[Khvatov Nikita @khvat]

@jam_croissant Now I see the full picture. Index-linked structured products make market makers buy calls and sell puts on $SPX / $SPY — a positive gamma regime. Meanwhile customers buy calls on AI tickers, which is a negative gamma regime. Moves get accelerated. $COR1M drops to historical minimums, confirming the dispersion.

[Khvatov Nikita @khvat]

@SRxTrades When choppy - naked strangles

[JaguarAnalytics @JaguarAnalytics]

I went from spending ZERO to over $30,000 per year run rate in Claude in just 6 month. This thought crossed my mind multiple times whether its worth it. Not because I don't see value in hidden angles sheet that we produce daily. It's because of usage limitations even with that much amount of spending. This note from Citadel touches upon this: "... ration scarce capacity towards the areas where the marginal productivity of AI justifies the marginal cost of using it." This note is yet another reason why semiconductors are getting wrecked daily.

[Michael | Hypermarkets @itsmichaelluu]

Biggest generational buying opportunity for $SPY is in June.

When $SPY crashes 10%-20% buy these:

1. $NOW ~$105 | Buy zone: $80–$85
Near 52-week lows. Agentic AI platform still printing revenue. Market overreacted to selloff.

2. $BE ~$254 | Buy zone: $160–$180
$2.6B Nebius fuel cell deal validates the thesis. AI power demand is just starting.

3. $SNDK ~$1,645 | Buy zone: $1,100–$1,200
Flash memory demand exploding as AI storage cycle accelerates hard.

4. $NVDA ~$205 | Buy zone: $165–$180
Off the highs but AI capex cycle just entered year three. Pullback is the gift.

5. $QCOM ~$204 | Buy zone: $180–$190
Jensen just publicly endorsed $QCOM. ByteDance ASIC deal massively underappreciated catalyst.

6. $ORCL ~$202 | Buy zone: $160–$170
Earnings tonight. Cloud RPO backlog growing 80%+. Bears get destroyed after this print.

7. $INTC ~$106 | Buy zone: $80–$90
Google sourcing 3M chips in 2028. Turnaround trade with explosive upside from here.

8. $GOOG ~$360 | Buy zone: $300–$320
AI Search monetization + cloud + Waymo. Most undervalued hyperscaler on the board.

9. $MSFT ~$400 | Buy zone: $360–$370
Copilot enterprise rollout just hit NHS 505K employees. Azure AI is compounding daily.

10. $META ~$586 | Buy zone: $520–$530
$145B capex plan + Llama dominance = AI moat nobody's pricing in correctly right now.

11. $AAOI ~$163 | Buy zone: $100–$120
Optical interconnects are the AI bottleneck. AAOI is the pick-and-shovel inside the wall.

12. $LITE ~$807 | Buy zone: $600–$700
Northland just raised PT to $1,200. Photonics supercycle is real and Lumentum owns it.

13. $PLTR ~$132 | Buy zone: $120–$125
85% YoY revenue growth. US gov + enterprise flywheel locked in. Dip buyers always win.

14. $MRVL ~$264 | Buy zone: $180–$200
Jensen called it the next trillion-dollar company. S&P 500 inclusion = forced buying incoming.

15. $AMD ~$461 | Buy zone: $360–$380
MI300X shipments accelerating. Hyperscaler diversification away from NVDA benefits AMD most.

16. $IREN ~$53 | Buy zone: $30–$35
Nvidia took a 30M share option at $70. That's a floor signal from the most credible source.

17. $NBIS ~$214 | Buy zone: $160–$170
Hyper-growth AI cloud. $1.7B UK expansion. BofA just raised PT to $280. Too cheap here.

♻️ RESHARE this post and write 1 comment, I'll DM you my top 3 for 10x-20x we can buy later this month.

[Khvatov Nikita @khvat]

@FinancePhoton Thanks. That’s what I thought.

[Khvatov Nikita @khvat]

@ZeeContrarian1 💯