The Anatomy of a Squeeze
Most retail traders chase green candles. By the time you see the breakout on a 5-minute chart, the "smart money" has already entered, and the market maker hedging engine is already in overdrive.
To catch a 0DTE (Zero Days to Expiration) gamma squeeze, you need to see what's happening inside the options chain, not just on the price chart.
What Our Scout AI Looks For
Our models don't just look at price. They scout for a specific sequence of events that we call the "Gamma Ignite" signature:
- OTM Call Aggression: We track bursts of buying activity in Out-of-the-Money (OTM) calls that are expiring today.
- Market Maker Positioning: When dealers are short these calls, they are "short gamma." As price rises, they must buy the underlying stock to hedge.
- The Feedback Loop: Dealer buying pushes price up -> OTM calls get closer to ITM -> Deltas increase -> Dealers must buy more stock.
Visualizing the Data
"If you're looking at a candlestick chart, you're looking at history. If you're looking at flow, you're looking at the future."
Option Scout visualizes this "gamma exposure" (GEX) in real-time. When our AI detects that a stock is approaching a "Flip Level" with high dealer short gamma, it issues a Scout Alert.
Example: SPY 580 Calls
- 10:15 AM: AI detects unusual volume (20k contracts) on the 580 strike.
- 10:17 AM: Stock is still flat at 578.
- 10:20 AM: Scout Alert triggers: "High Probability Gamma Squeeze Detected."
- 10:45 AM: SPY rips to 582 as dealers are forced to cover.
- Result: The 580 calls go from $0.20 to $2.50 (+1,150%).
Conclusion
You can't compete with HFTs on speed. But you can beat them on strategy if you have the right intelligence. Option Scout gives you the X-ray vision to see the squeeze before it sparks.