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• What is the SpotGamma HIRO Indicator?

  HIRO by SpotGamma monitors all options trades, in real time, across US stocks, indices and ETFs. By applying SpotGamma’s proprietary algorithm to each transaction, HIRO translates millions of individual options trades and their estimated impact on the markets into easy-to-read tables and graphs.

   

  HIRO stands for "Hedging Impact of Real-Time Options". One of the strongest forces in futures markets is that of options hedging. Large options transactions can often require large hedges which can lead to rapid fluctuations in markets.

   

  HIRO monitors every single options trade taking place in many of the market’s most active underlying US stocks, indices and ETFs. As options trades take place, options dealers and market makers may need to adjust their risk by hedging with the underlying stock. The HIRO indicator considers the entire US Options Market and projects key information relative to the hedging requirement for each of those trades.

   

  At the core of the signal, HIRO estimates the associated hedging impact for options dealers & market makers. By applying SpotGamma’s proprietary algorithm to each transaction, HIRO translates millions of individual options trades and their estimated impact on the markets into easy-to-read tables and graphs.

   

  At SpotGamma, we truly believe that when you pair HIRO and its real-time dashboard with current SpotGamma levels and analysis, this powerful took helps unveil the impact of options trading on an underlying stocks’s movement - in real time!

   

   

  

• How can I use the SpotGamma HIRO to help me trade?

  We believe HIRO is the best system available for viewing the impact options are having on stocks in real-time. There are two unique insights that HIRO provides. The first is the impact over a time period during the live trading day when large options hedging flows may have a cumulative impact on the volatility and direction of a stock or index’s movement. Secondly, there are acute trades which take place that will need to be hedged, and by tracking this activity there may be opportunities to adjust positions.

   

  Knowing the options pressure can help your trading by empowering you to follow trends, or, to identify when options pressure shuts off and a stock is more likely to revert back to a previous price level. To take advantage of such moves, and find the most actionable stocks inside HIRO, this quick three-step checklist can help you identify stocks that may have trading opportunities right now.

   

   

  Step 1: Review the Major Indices

  The goal in step one is to look to see which indices are being driven by current options pressure. Inside HIRO, the dashboard defaults to the ETFs for three most options-influenced US indices. Let’s take a look at SPY. Each chart comes with filters to change what’s displayed in your viewing pane. First, select "Total” at the top, then “All Trades,” and then 30 minutes as the choice for the rolling window, as this time frame provides a good balance of of what we refer to as “signal vs noise.”  

   

  Step 2: Narrow In on Puts Versus Calls

  The goal in this step is to see if traders are buying calls to speculate on stocks that could break out or buying puts to have protection, or insurance, in place in case of a downturn. To see the impact of puts vs. calls, in particular, you just change your filter from “Total” to “Puts/Calls.” 

   

  Step 3:  Go Deeper on Same Day Options for Immediate Trading Impact

  Same day options can have a dramatic impact on stock prices.  To see the shortest dated options, often called 0DTE options, you can click “Total” again at the top of the filter page, turn off “All Trades”, and then choose "Next Expiry." This view will reflect the total impact of the 0DTE trades. 

   

  While you can choose many ways to customize your HIRO profile, we believe these three steps provide a great way to view both the major indices and your favorite stocks. As you develop your own preferences, we are confident that HIRO's unique insights into the real-time option flow impact can improve your trading and empower you to see what the professionals see.

   

  

• What stock information is being displayed in HIRO?

  In the upper right corner of the viewing pane, HIRO shows you the current stock, ETF or index of interest. It also includes SpotGamma proprietary levels which are refreshed each trading day.

   

  

   

  Current HIRO: This value reflects the current delta notional hedging pressure for a stock based on today’s flow. A negative value would indicate current downward hedging pressure and a positive value indicates upward hedging pressure. This shows whether the options market may have been pushing the price up or down.

   

  30 Day HIRO Range: This value reflects the range for HIRO Hedging pressure over the last 30 days.

   

  Hedge Wall: A Hedge Wall has a similar impact for individual stocks as the Volatility Trigger™ for indices, and can be thought of as the point where realized volatility is expected to start increasing (the expected percentage range over a period of time based on historical prices with 68.3% confidence). Like any other of our major key levels, when Hedge Walls increase it is a bullish sign for the market and it is a bearish signal when they decrease. 

   

  Key Gamma Strike: Large gamma strikes contain a significant amount of Gamma. The largest gamma strike appears on index products and is similar to the Key Gamma Strike, which can be found on stocks in HIRO. There are often a few large gamma strikes listed on an index product, and they are ranked with “large gamma strike 1” being the strongest. These are powerful support/resistance levels that can be used for setting up high-probability trades.

   

  Key Delta Strike: The Key Delta Strike has the largest delta. In general, this is one of the major key levels of support and resistance. The other two of its kind–that can be found in between the Put Wall and Call Wall–are the Key Gamma Strike and Hedge Wall. 

   

  Call Wall: The Call Wall is the largest net call gamma. Call Walls are essential in our daily levels analysis. Their main function is that they define the upper bound of the wider probable range. The direction that walls shift overnight is a strong directional signal: up equals bullish and down equals bearish. This is often what we are keeping the closest eye on while waiting for a bullish signal from the market. 

   

  Put Wall: The Put Wall is our major support level, which measures the most amount of put gamma. Our data shows that the Put Wall offers strong support, but it is not quite as strong in equivalence as the Call Walls are in being a resistance point. The Put Wall is often a point where buyers will enter the market. It is also a point where put holders are likely to close their positions for a profit.

   

  

• What does each line on the HIRO Chart represent?

  There are multiple lines visible on the HIRO Chart depending on which chart and which filters you have activated.

   

  There are two chart views:

  1. Total Options View
  2. Puts and Calls View

  Total Options View

  Total Options View displays the real-time impact of both puts and calls on an underlying security.

  Puts and Calls View

  Puts vs. Calls View allows traders to isolate the impact of puts vs. calls within HIRO.

   

  There are three filter views:

  1. All Trades
  2. Next Expiry
  3. Retail Only

  All three filters can be seen on each view.

   

  All Trades Filter

  This filter captures all projected impact of all options trades within the US options complex for a given security or index. This filter does use SpotGamma proprietary logic to filter out some trades that we consider hedged and therefore do not drive the underlying security.

   

  Next Expiry Filter

  The Next Expiry Filter in Total Options View allows traders to see how and when options that expire the same day (0DTE) or on the next listed expiration are driving stocks, indices, and ETFs.

  The Next Expiry Filter in Puts vs. Calls View allows traders to isolate the impact of puts vs. calls specifically for options that expire the same day (0DTE) or within a few days.

   

  Retail Only Filter

  The Retail-Only Filter in Total Options View allows traders to see when options flows are driven by non-institutional trades, to see which trades are likely retail-driven.

  The Retail-Only Filter in Puts vs. Calls View allows traders to isolate the impact of puts vs. calls specifically for trades that are likely retail-driven.

   

  Total View with All Filters On

  • Blue Line (All Trades)
  • Teal Line (Next Expiry)
  • Fuchsia Line (Retail Only)
  • White Line (Price)

   

  Put/Call View with All Filters On

  • White Line (Price)
  • Light Blue (All Trade Puts)
  • Orange (All Trade Calls)
  • Dark Blue (Next Expiry Puts)
  • Green (Next Expiry Calls)
  • Purple (Retail Only Puts)
  • Yellow (Retail Only Calls)

  

• What does the sliding scale in the “HIRO Signal” column indicate?

  The HIRO Signal column features a sliding scale that represents the 30-day range of HIRO for a given stock or index.

  

  1. The full width of the gauge represents the 30-day range of the HIRO signal.

  2. The colored segment, ranging from red to green in color, represents the 5-day range of the HIRO signal.

  3. The open circle plots today’s HIRO signal so you can see today’s HIRO reading relative to the last 30 days and last 5 days. The color of the open circle represents today’s intraday flow. 

   

  

  Red indicates a negative HIRO reading and negative delta flow, where traders are selling calls and buying puts. A dark red open circle indicates the HIRO signal is near the low of the day.

   

  

  Green indicates a positive HIRO reading and positive delta flow, where traders are buying calls and selling puts. A dark green open circle indicates the HIRO signal is near the high of the day.

   

  

  Yellow indicates a neutral position.

   

  
• How do I access the HIRO User Guide?

  You can access our HIRO by SpotGamma Bloomberg App user guide here.

   

  

• How do I add symbols to my HIRO watchlist?

  HIRO can automatically import your current Bloomberg Worksheets into your Watchlist (excluding non-US equities). To perform this function, there are a few easy steps:

  

  1. Click the drop-down and your worksheets will show up from Bloomberg

  2. Select the worksheets you want to have loaded into the Watchlist

  3. We will also add a SpotGamma Indices Worksheet with the large Indices and Combos

   

  

• What do the HIRO Flow Alerts indicate?

  The HIRO Flow Alert flags large option flows in real time so users can be alerted to significant options activity in a given stock or ETF. Using a proprietary SpotGamma model, influenced by estimated hedging impact, the alert fires when flows may be driving price action in the underlying stock. 

  For all listed US options, SpotGamma calculates a specific “impact threshold” for the given security, and alerts the user when this threshold has been breached.

  By default, HIRO Flow Alerts are automatically turned on for the most active stocks within the interface. 

  

  1. Alert Bell - When an alert fires, users will see the alert bell icon on the top right of the application turn red 

  2. Flow Alert - Additionally, “Flow” is displayed on the HIRO chart corresponding to the time the alert was triggered

   

  

• What do the Put Wall Breached Alerts indicate?

  The Put Wall is considered SpotGamma’s major support level, based on current open interest. SpotGamma alerts users when this level is breached, as the stock may find support or mean revert back above this key trading level. The Put Wall Alert will fire on the most heavily-traded options securities.  

  

  1. Alert Bell - When an alert fires, users will see the alert bell icon on the top right of the application turn red 

  2. Put Wall Breached - Additionally, “Put Wall Breached” is displayed on the alert dropdown along with the time the alert was triggered

  3. Put Wall Line - You can see the Put Wall key level line across the main viewing pane within HIRO

   

  

• What do the Call Wall Breached Alerts indicate?

  The Call Wall is considered SpotGamma’s major resistance level, based on current open interest. SpotGamma alerts users when this level is breached, as the stock may find resistance or mean revert back below this key trading level. The Call Wall Alert will fire on the most heavily-traded options securities.  

  

  1. Alert Bell - When an alert fires, users will see the alert bell icon on the top right of the application turn red.

  2. Call Wall Breached - Additionally, “Call Wall Breached” is displayed on the alert dropdown along with the time the alert was triggered.

  3. Call Wall Line - You can see the Call Wall key level line across the main viewing pane within HIRO.