Tuesday, February 17th, 2026

Context

Heading into the open, we saw the 600 strike as the dominant max gamma 'magnet' for the day. Indeed, after a small initial chop at the open, the market not only sought this 600 strike but exceeded it. However, after entering the negative gamma regime above 600, the market quickly reversed and sold off in a swift unwind. I attempted a small long expecting a small gamma bounce at 595, but my stop was too tight, and I was a bit early for this ~40p+ long scalp. Despite the loss, we discussed I was green on the day because of the 50p I made in the overnight session.

Setup

• Regime: Negative gamma below 600
• Key level: 600 dominant max gamma strike, with 595 and 590 as secondary key gamma levels

Trade

Entered long at visible absorption on order flow around the equivalent QQQ strike 595 gamma wall, with a tight stop just below. The market initially bounced as expected, but the bounce was short lived and the market quickly reversed and hit my stop.

Entry: 24514.50 Stop: 24500 Exit: 24500 (stopped) Result: -14.50p, LOSS

Takeaway

As always, catching knives is tough, even when using these gamma levels as a guide. I was a bit early on the entry, and my stop was too tight for the volatility of the move. In hindsight, I could have given it more room to breathe, or waited for stronger absorption before entering. The key takeaway is that while these gamma levels can provide valuable context and potential trade opportunities, they are not guaranteed to hold and it's crucial to manage risk appropriately when trading around them.