The 200% Tesla Exit and Why Gamma Risk Just Hit a Record

Don here...

I closed the Tesla Superfly for over 200% on the second contract this morning. The first came off at 136%.

Both entered live yesterday. Both closed today.

Tesla landed at exactly $368.78. That was the lower expected move target from the weekly matrix sheet, rounded to 370.

The trade worked because today's OpEx is the largest gamma event I've seen. The S&P sat in the same range for seven straight days heading into $5.7 trillion in notional expiration.

What's crazy to me is how people came into today and started hitting the 0DTEs hoping to catch the right side of a market swing.

That's gambling people!

Next Tuesday at 1 PM EST, I'll be breaking down the 0DTE Superfly strategy. I want to show you a BETTER way to trade 0DTE options that will change your life.

Add the webinar to your calendar.

In today's Live Trading Room session replay, you'll see:

Why gamma risk on this OpEx hit record levels and what that means for your positioning. A fifty delta can become sixty-five with a one dollar move on expiration day. Market makers are heavily negative gamma, forcing millions of rehedges daily.
The 6611 level in the S&P that separates consolidation from a hundred-point freefall. Below 6611, there is nothing to catch the market. I mapped where support sits on a five-year chart and why nine-month charts are useless right now.
How the VIX term structure signals the sell side is not over. May and July volatility futures are nearly flat. The market is pricing risk now the same as risk later, which is the opposite of what a real reversal needs.
The Microsoft exit at 70% and why the TLT bear trade keeps printing. Microsoft erased two full years of gains. The TLT position uses a deep in the money put as synthetic stock replacement with 28 days left.

I walked through the SMCI scandal live. The co-founder was caught on video swapping Nvidia GPU stickers on $2.5 billion in smuggled hardware.

The selling is not finished. Volatility hasn't screamed yet.

→ Watch the full Tesla Superfly execution, gamma risk breakdown, and why the sell side has more room to run

To your success,

Don Kaufman
Chief Market Strategist, TheoTRADE

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