Understanding the JPM Collar - Trade Review April 2nd 2025 скачать в хорошем качестве

Understanding the JPM Collar - Trade Review April 2nd 2025

Obviously, today is not a normal day (tariff announcement day), but for anyone interested, the reason (at least in part) for that bounce at 5566 today was that it is a key gamma level. It's where the JPM Collar currently sits. JPMorgan sells SPX calls and buys SPX puts each quarter to hedge a massive equity exposure. It creates a sort of volatility dampener or range where the price often gets pinned. It covers billions in notional exposure - and market makers adjust around it.If we bounced off ~5565 (the upper collar): That’s where JPM’s short-call leg is - they don’t want price ripping through it. Dealers are likely short gamma above that level, so they sell into strength → which can cap the upside and cause reversals. Combined with overall market conditions, & FVGs created, it’s a very valid explanation for the bounce or stall. These collars create gamma zones that market makers hedge around. Flows can reverse as we approach the upper or lower bound, and the price may bounce or stall. Think of it like a magnetic zone: not a hard wall, but an area where positioning builds up, creating friction or support/resistance. Treat the collar edges like strong zones: expect reactions, potential mean reversion, or slower movement near those bounds. Thank you for watching 🤗 P.S. Please ignore those buys and sells on my chart. Testing a new broker last night that integrates with TradingView. Those aren't actual trades before anyone comes at me. ----------------- Disclaimer: The content in this video is for informational and educational purposes only. It is not financial advice, and I am not a licensed financial advisor. Always do your own research and consult with a qualified professional before making any trading or investment decisions. Trading involves risk and may not be suitable for all investors. You are solely responsible for your own decisions and trades.