GLD/SLV Intraweek Patterns

A zero debit GLD spread trade/CPI vol trades

My aunt Esther just texted me about the debasement trade; even she is yolo-ing GLD calls for some easy daily QE. (She also meets with her silver scalping group Quantum Codgers over mocktails to share tips on microcap SMRs.) It does make you wonder, how much of this is truly just gamma games gone wild? GLD does have Mon/Wed/Fri calls to play with and they are doing huge volume in this debasement delusion:

And SLV which also has 0DTEs three days a week now, it has joined the GLD options rager and raised the volume/s:

But, I am not alone in conjecturing that this is just a gamma gala gone giddy; Joe Weisenthal weighs in with his two soon to be uncoined cents:

But the point here, isn’t to make rational and cogent arguments that this nonsense will end badly, Mais Non!! We don’t live in a pragmatic period, this is the golden age of options trading, Mon Dieu!! ( L’âge d’or du trading d’options) So let’s see if we can find a glitch in the gamma matrix. And perhaps this is it, Thursdays:

What is it about 1am on Tuesdays and 9am on Thursdays? No idea other than to observe that the prior day was an expiring GLD option. A mini unclench perhaps???

So… two trade ideas. GLD $1 wide put diagonal, $376/375 for Oct 24th/29th which includes Fed meeting vol in the back leg for .48ish and a 24th/27th $376/$375 put diagonal that costs…0 cents:

Current one-day Fri/Monday diagonals are already .25-45, and they would light up if GLD retraced on Thursday morning:

And three trading day wide GLD diagonals are over $1-1.35 already with no monetary policy event in the back leg:

Avoid these if you think GLD is about to finally correct its parabola. OPEX 17th has a lot of open interest, so an early unclench is definitely a possibility, and adds even more credence to a potential Thursday dip:

On to CPI vol trades. It cometh shutdown or no shutdown, as it is needed to adjust social security payment formulas: