The gamma revolution that's making traders irrelevant

Look, I'm gonna tell you something that's gonna piss you off.

As of one week ago, you're living in a completely different trading world. And if you think whatever worked five or 10 years ago is gonna work today, I have news for you.

You're about to become a ghost.

Here's what nobody's figured out yet: Market cap still matters - there's no question Nvidia is the biggest monkey on the block. But now I'm actually gonna argue that gamma is even more important than market cap.

Because that's all anybody wants to trade anymore.

And papers will be written about this in the next couple of years.

The Death of Everything That Used to Matter

You know what's wild?

I've been watching this shift happen in real time, and the entire market making industry just pulled up shop. They stopped caring about everything except the products with zero DTE options.

Think about it like this: If you have 100 computers running your trading operation, it now takes 85 of them just to run markets on the tech stocks with zero DTE. The other 15 computers? They update everything else less often using what they call "auto quote."

That's why when you look at something like XLF - the financial sector ETF - the markets are 10 cents wide in a $54 product. Two weeks ago, everybody was still trading it.

Now? Nobody gives two sh*ts about financials.

It makes no sense until you realize it makes perfect sense.

The Gamma Takeover

Here's what 99.8% of the market doesn't understand:

The shorter the time to expiration, the higher the gamma risk.

And gamma risk? That's what makes market makers money.

So if you can make MORE in one product than another... why would you focus anywhere else?

Even if the spreads in Tesla or Apple are penny wide, these firms will make a crap load more money in THOSE names than they ever would in traditional products.

Because gamma is the engine that makes them money.

Movement. That's it.

You Wanna Know How I KNOW This Revolution is Real?

Look at the volatility data.

We have non-farm payrolls tomorrow and CPI on Friday. The financial media will talk about it until they're blue in the face.

But the SPX volatility tells the truth. The difference between Wednesday and Thursday implied volatility? Less than 0.3%. For CPI on Friday? They're not pricing in ANY increased risk at all.

Nobody cares. Period.

Financial news is completely gone.

Trump could make a mistake in who he selected for the Fed... which supposedly happened last night and was blasted all over media... and the markets barely blinked.

Even if it was real, the markets aren't gonna react anymore.

They don't care.

Gamma is in the driver's seat. And it's gonna CONTINUE to be in the driver's seat.

The Butterfly Proof

Look, I don't just talk about this stuff. I'm trading it.

I've placed four zero DTE butterflies since this revolution started. Three out of four hit.

→ Tesla butterfly: Turned 39 cents into a dollar (157% in a session)

→ Google butterfly: Turned 70 cents into $1.75 (150%)

→ Meta butterfly: Turned 28 cents into $1.15 (311%)

These aren't lucky guesses. This is what happens when you tune into how much gamma is REALLY impacting directional bias in these markets.

Yesterday? Almost every zero DTE product on the screen clipped an upper or lower edge of its expected move. Meta hit the upper edge of its expected move for the ENTIRE WEEK... in a single session.

Microsoft is already OUTSIDE its expected move for the week.

That's not normal price action. That's gamma throwing the marketplace around like a little child.

The Concentration Problem

What's scary is this concentration of liquidity is only getting worse. When volatility really picks up, we're just gonna concentrate into SPX zero DTE and everything else gets left to its own devices.

Emerging markets? I've got a trade on EEM with 17 days left and it's not trading at all. Financials? They've traded 28% of what they'd normally trade at this point in the session.

The entire market making industry agrees on nothing except this: They totally agree that big tech with zero DTE is all that matters now.

The New Reality

You're not trading Microsoft anymore. You're trading letters on a screen and implied volatility and gamma risk. That's really what it comes down to.

And here's the thing that should terrify you: Most professionals in this industry don't even know what gamma is. But gamma owns you at this point. Gamma's big, and it can take us both bullish and bearish in a hurry.

You're constantly in this business having to learn and reinvent yourself, or you become irrelevant. The people who think they can rest on their laurels? The ones who say "but my moving averages worked"?

Wake the hell up. Look at this stuff.

Because whatever way the ball starts rolling in these gamma-heavy products, the entire market's gonna move with it.

The revolution isn't coming. It's here.

And most people haven't even noticed yet.

I'm demonstrating exactly how this gamma revolution works this Friday the 13th in my Zero DTE Live Mastermind.

Three hours of live trading, showing you the butterfly setups and gamma plays that are dominating these markets NOW.

I'll be putting real money to work using the same strategies I just showed you. If you want to see how to actually trade in this new reality, join me Friday

Because sitting on the sidelines while this happens? That's how you wake up six months from now wondering why nothing works anymore.

To your success,

Don Kaufman

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