SP500 Break Above 4556 Could Rocket 🚀 Higher

It’s all about the Greeks

There are many variables that push markets, stocks, higher or lower, yet most people believe the movement in stocks and bonds indexes has all to do with fundamentals. It is far from the truth in this day and age.

There are many variables that push markets, stocks, higher or lower, yet most people believe the movement in stocks, bonds and indexes has all to do with fundamentals. That is far from the truth in this day and age.

How to determine if a stock or index is going higher

It’s all about the Greeks. Delta, Gamma, Theta, and Vega. In particular Gamma is one of the largest indicators of a directional move in a company’s stock price or an index.

What is Gamma?

Gamma is a measure of the rate of change in an option's Delta (“Delta measures how much an option's price can be expected to move for every $1 change in the price of the underlying security or index. For example, a Delta of 0.40 means the option's price will theoretically move $0.40 for every $1 change in the price of the underlying stock or index.” - Schwab.com) .

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