Asset: Futures

Tickblaze Integration

Written by Fabio Ruggeri on March 24, 2025.

In this article you will learn how to set up the Menthor Q Indicators for Tickblaze. You can now access Gamma Levels, Swing Levels and Blind Spots Levels on the platform. You can now integrate the MenthorQ data into Tickblaze directly via API.

What is Tickblaze?

Tickblaze is a multi-asset “Hybrid” Trading platform built for all traders. It is used by retail traders & investors, prop firms, buy-side firms, sell-side firms as well as Universities. Tickblaze fosters a vibrant community with its Peer-to-Peer script sharing and live trade room education, nurturing growth and collaboration among traders at all levels.

If you are interested in joining Tickblaze MenthorQ users can benefit from a 35% Discount using the Coupon Code: MQ35.

👉 Learn more about Tickblaze here.

Indicator Features

Within the Indicator you have the following features:

Integration via API
Full Customization of Levels Plots and Labels
Access Multiple Levels Type:
- Gamma Levels
- Gamma Levels Intraday
- Gamma Scalping
- Gamma Scalping Intraday
- Blind Spots
- Swing Levels
Levels Conversion. You can convert all Levels Type from one asset to the other using Manual Ratio

Check out the Video Tutorial.

How to integrate MenthorQ Levels on Tickblaze

Integrating the MenthorQ Levels into Tickblaze is very simple. To do so follow these Steps:

Log into your Account Dashboard and go under Integration. Locate the Tickblaze section and download the indicator file.
❗Do not rename the file. File name needs to be: MenthorQ.Indicator.zip
Open Tickblaze and go under Menu > Tools > Import Resource

Import Step 1 — Tickblaze Integration 11

Locate the MenthorQ Indicator within your folder and click Import.

Import Tickblaze 2 — Tickblaze Integration 12

Open the Indicator Icon and Locate the MenthorQ Indicator.

Import Tickblaze 3 — Tickblaze Integration 13

Import Tickblaze 4 — Tickblaze Integration 14

Select the Indicator and add to the chart

Import Tickblaze 5 — Tickblaze Integration 15

Configure the Indicator

Once downloaded the indicator go into your Tickblaze Indicator Settings.

Step 1. Add your API Key

Scroll down the Indicator Settings and add your API Key. You can retrieve the API Key within the MenthorQ Account Dashboard.

Tickblaze API Key — Tickblaze Integration 16

Once added the API Key click on Refresh Price Levels.

Refresh Levels — Tickblaze Integration 17

Step 2. Choose Level Type

You can select what types of Levels you want in your chart and the Gamma Model. You can add Gamma Levels, Swing Levels (when available) and Blind Spots Levels.

For Gamma Levels we have 2 Models:

Gamma Levels. Those are the main MenthorQ Gamma Levels.
Gamma Scalping. This model allows you to access more gamma levels within a smallare range. Tailored for Futures Traders who are looking at tight areas for scalping.
Blind Spots Levels. You can learn more about Blind Spots here.
Swing Levels. You can learn more about Swing Levels here.

Step 3. Customize the Levels Format

Within the Indicator you have the ability to fully customize the color of the labels, select which labels to plot, choose the style and more.

Step 4. Levels Conversion

Within MotiveWave you can now convert Levels from one asset to the other. For example you can do the following conversions:

Convert End of Day SPX Gamma Levels to ES
Convert Intraday QQQ Gamma Levels to NQ
Convert QQQ Blind Spots Levels to NVDA
Convert GLD Swing Levels to GC

Note: Conversion only works with Manual Ratio. For more information about Levels conversion check out our Tutorial Videos on our Trading Integrations Course.

Tickblaze Levels conversion — Tickblaze Integration 20

MenthorQ Levels Conversion

Written by Fabio Ruggeri on March 8, 2025.

The Levels Conversion is one of the Key Feature of all MenthorQ Indicators. The Levels Conversion is available on TradingView, NinjaTrader, Sierra, ATAS, Quantower and the other integrations.

What is Levels Conversion?

Levels conversion helps traders overlay price levels from indices like SPX, QQQ, and NDX onto futures charts (ES, NQ, etc.). Since futures and spot prices differ, adjustments using a spread or ratio ensure accuracy. Futures prices trade at a spread or ratio to their respective indices. Without conversion, levels will be misaligned due to price differences.

Check out our tutorial guide.

What are common levels conversions

These are some of the common Levels Conversions:

SPX Gamma Levels to ES
SPY Gamma Levels to ES
QQQ Gamma Levels to NQ
NDX Gamma Levels to NQ
SPX Intraday Gamma Levels to ES
QQQ Intraday Gamma Levels to NQ
SPX Swing Trading Levels to ES
QQQ Swing Trading Levels to NQ
GLD Levels to GC
DIA Levels to YM
USO Levels to CL
NVDA and MAG7 Levels to QQQ

What’s the Difference Between Spread and Ratio?

Spread = ES1 - SPX (absolute point difference)
Ratio = ES1 / SPX (proportional difference)

Formulas for Futures vs. Spot Levels Conversion

1. Understanding the Price Difference

Futures prices (e.g., ES, NQ) do not trade at the same price as their respective indices (e.g., SPX, NDX). This is because of factors like fair value, interest rates, and dividends.

To properly align levels, we need to adjust for this difference using one of the following:

Spread (Absolute Difference)
Ratio (Proportional Difference)

2. Formula for Spread (Absolute Adjustment)

This is the formula to calculate the Spread.
Spread = Futures Price − Index Price

Example:

If:

ES1 (S&P 500 Futures) = 5000
SPX (S&P 500 Index) = 4975

Then: Spread = 5000−4975 = 25 points

3. Formula for Ratio (Proportional Adjustment)

We can also use the Ratio and this si the formula:
Ratio = Futures Price / Index Price

Example:

If:

ES1 = 5000
SPX = 4975

Then: Ratio= 5000 / 4975 = 1.005

Example: Converting QQQ Levels to NQ

Once of the common use case is to convert levels from the index or ETFs to the Futures. In this example we will be converting QQQ Levels to NQ. Let’s say that QQQ quotes at $500 while NQ is trading at 21000.

Now let’s calculate the Ratio. To calculate the ratio we use the formula above and divide NQ Price by QQQ price.

Ratio= 21000 / 500 = 42

Now let’s look at the levels for QQQ: Call Resistance, 515, Put Support, 480, HVL, 510, 1D Min, 484.5, 1D Max, 499.08, Call Resistance 0DTE, 490, Put Support 0DTE, 486, HVL 0DTE, 489, Gamma Wall 0DTE, 490, GEX 1, 485, GEX 2, 495, GEX 3, 484.78, GEX 4, 489.78.

To convert these levels to NQ we need to multiply each level by the ratio of 42.

Ratio Conversion — MenthorQ Levels Conversion 22

Manual Ratio vs Auto Ratio

The MenthorQ Level Indicators already manage the conversion. The indicator allows manual or auto conversion.

1. Manual Conversion (User-Controlled)

What It Is:

The trader manually calculates the spread or ratio and updates their indicator settings.

How It Works:

At the start of the trading day, the trader checks the latest price difference (spread) or price proportion (ratio) between futures (e.g., NQ) and the underlying index (e.g., QQQ).
They then input this value into the indicator to correctly align levels.

Formula Used:

Spread: NQ Price - QQQ Price
Ratio: NQ Price ÷ QQQ Price

Example:

At the market open, QQQ is trading at 500, and NQ is at 21,000.
The trader calculates the spread (21,000 – 500 = 20,500) and enters it into the indicator.
If using the ratio method (21,000 ÷ 500 = 42), they input 42 into the indicator instead.
The process needs to be repeated daily or whenever necessary to stay accurate.

✔ Pros:
✅ Allows traders to manually verify accuracy.
✅ Simple and effective for short-term trading.
✅ Works well when the spread remains stable.

✔ Cons:
❌ Time-consuming (must be done daily or intraday).
❌ Prone to human error.
❌ Doesn’t automatically adjust for intraday fluctuations in spread/ratio.

2. Auto Conversion (Indicator-Driven)

What It Is:

The indicator automatically calculates the spread/ratio based on the previous day’s closing price and applies it to today’s levels.

How It Works:

The indicator fetches the last closing price of both the futures (e.g., NQ) and the underlying index (e.g., QQQ).
It computes the spread or ratio and applies the adjustment automatically.
As the market opens, levels are already adjusted without user intervention.

Formula Used:

Spread: Previous Close (NQ)−Previous Close (QQQ)
Ratio: Previous Close (NQ)Previous Close (QQQ)

Example:

Yesterday’s close:
- QQQ closed at 500
- NQ closed at 21,000
The indicator automatically calculates:
- Spread: 21,000 - 500 = 20,500
- Ratio: 21,000 ÷ 500 = 42
The indicator applies the updated values without user input.

✔ Pros:
✅ No manual updates required—saves time.
✅ Eliminates human error in inputting values.
✅ Ensures consistent and accurate level placement.
✅ Best for intraday traders who want real-time accuracy.

✔ Cons:
❌ Uses the previous day’s closing values, which might not reflect real-time fluctuations.
❌ If the spread changes significantly intraday, the levels could become slightly misaligned.

Futures Seasonality Strategy

Written by Fabio Ruggeri on February 21, 2025.

The Futures Seasonality Strategy is a systematic trading approach designed to select and trade futures contracts based on their seasonal patterns. The strategy aims to capture recurring seasonal trends by selecting futures contracts with strong historical seasonality scores.

Q-Score Seasonality Model

The Q-Score Seasonality Model assesses the historical performance of an asset over a specific time frame. Using 20 years of historical data, our model examines the price behavior of an asset over the next five days and assigns a score ranging from -5 to 5:

-5: Low Seasonality. Indicates a Bearish seasonality
0: No Seasonality. No significant seasonal trend
5: High Seasonality. Indicates a Bullish seasonality

By leveraging the seasonality score, traders can anticipate potential price movements based on past performance and create advanced strategies. Our Seasonality score looks at the trend for the next 5 days. You can read more about our Q-Score in our dedicated Guide.

Q Score Seasonality — Futures Seasonality Strategy 29

Asset Universe

The strategy focuses on the following futures contracts, which have demonstrated strong seasonal trends:

ES (S&P 500 E-mini Futures)
NQ (Nasdaq-100 E-mini Futures)
GC (Gold Futures)
ZN (10-Year Treasury Note Futures)
CL (Crude Oil Futures)

The following futures were analyzed but not included due to lower seasonality performance:

Strategy Rules

Entry Conditions:

Filter futures contracts with seasonality score ≥ 0.
Rank selected futures based on seasonality score and choose the one with the highest score.
If multiple futures have the same seasonality score, select the one with the highest average return over the last month.
Buy at the market open.

Exit Conditions:

Sell at the market open the next day unless the same futures contract remains the top pick.
If no futures meet the entry conditions, no position is taken.

Performance Summary

Let’s look at the historical backtest of this strategy and look at the performance versus the Benchmark (S&P 500 Index).

Futures Strat Performance — Futures Seasonality Strategy 30

Here are some Key Metrics.

Futures Strat Key Metrics — Futures Seasonality Strategy 31

We can also look at the return distribution across years comparing this with the SPX.

The Futures Seasonality Strategy outperforms the SPX benchmark, achieving a cumulative return of 1,279.41% and a CAGR of 17.77%.
The Sharpe Ratio (1.11) and Sortino Ratio (1.70) suggest a strong risk-adjusted return despite higher volatility (24.07% annualized).
Drawdown (-33.12%) is comparable to SPX (-33.92%), indicating a similar level of risk.

Futures Strat Annual Return — Futures Seasonality Strategy 32

And finally let’s look at the distribution of returns by month historically.

Futures Strat Seasonality Return — Futures Seasonality Strategy 33

Sensitivity to Initial Capital

The strategy was tested with varying capital levels to evaluate its robustness. Larger capital allocations help mitigate the negative effects of commission costs, leading to more stable and consistent performance over time. Performance across different capital allocations is detailed below.

Futures Strat Sensibility — Futures Seasonality Strategy 34

MotiveWave Integration

Written by Fabio Ruggeri on February 19, 2025.

In this article you will learn how to set up the Menthor Q Indicators for MotiveWave. You can now access Gamma Levels, Swing Levels and Blind Spots Levels on the platform. You can now integrate the MenthorQ data into MotiveWave directly via API.

What is MotiveWave?

MotiveWave is a trading and charting platform designed for advanced technical analysis, strategy development, and automated trading. It supports multiple asset classes, including stocks, futures, forex, options, and cryptocurrencies. Learn more about MotiveWave here.

Indicator Features

Within the Indicator you have the following features:

Integration via API
Full Customization of Levels Plots and Labels
Access Multiple Levels Type:
- Gamma Levels
- Gamma Levels Intraday
- Gamma Scalping
- Gamma Scalping Intraday
- Blind Spots
- Swing Levels
Levels Conversion. You can convert all Levels Type from one asset to the other using Manual Ratio

Check out the Video Tutorial.

How to integrate MenthorQ Levels on MotiveWave

Integrating the MenthorQ Levels into MotiveWave is very simple. To do so follow these Steps:

Log into your Account Dashboard and go under Integration. Locate the MotiveWave section and download the indicator zip file.

We have two indicators available: The Windows and the Mac OS Version.

MotiveWave Versions — MotiveWave Integration 46

Paste the indicator in the MotiveWave Extensions folder within your computer.

Extraction Study 1 — MotiveWave Integration 47

Unzip the File into the folder

Extraction Study 2 — MotiveWave Integration 48

This is how the folder should look like after the Zip file has been extracted

Extraction Study 3 — MotiveWave Integration 49

Add the Indicator to your chart by looking at the menu: Study – Custom

Add Study MotiveWave — MotiveWave Integration 50

Configure the Indicator

Once downloaded the indicator go into your MotiveWave Indicator List and look for the MenthorQ Levels Indicator.

Step 1. Add your API Key

Scroll down the Indicator Settings and add your API Key. You can retrieve the API Key within the MenthorQ Account Dashboard.

Step 2. Choose Level Type

You can select what types of Levels you want in your chart and the Gamma Model. You can add Gamma Levels, Swing Levels (when available) and Blind Spots Levels.

For Gamma Levels we have 2 Models:

Gamma Levels. Those are the main MenthorQ Gamma Levels.
Gamma Scalping. This model allows you to access more gamma levels within a smallare range. Tailored for Futures Traders who are looking at tight areas for scalping.
Blind Spots Levels. You can learn more about Blind Spots here.
Swing Levels. You can learn more about Swing Levels here.

Motive Wave Gamma Levels — MotiveWave Integration 53

Step 3. Customize the Levels Format

Within the Indicator you have the ability to fully customize the color of the labels, select which labels to plot, choose the style and more.

Levels Customization — MotiveWave Integration 54

Step 4. Levels Conversion

Within MotiveWave you can now convert Levels from one asset to the other. For example you can do the following conversions:

Convert End of Day SPX Gamma Levels to ES
Convert Intraday QQQ Gamma Levels to NQ
Convert QQQ Blind Spots Levels to NVDA
Convert GLD Swing Levels to GC

Note: Conversion only works with Manual Ratio. For more information about Levels conversion check out our Tutorial Videos on our Trading Integrations Course.

Converted Levels — MotiveWave Integration 56

Q-Score

Written by Fabio Ruggeri on February 18, 2025.

The Menthor Q-Score

Written by Fabio Ruggeri on February 18, 2025.

In today’s fast-paced financial markets, traders and investors seek objective, data-driven insights to enhance their decision-making. The Q-Score, derived from our proprietary Quant Models, offers a comprehensive scoring system that evaluates assets based on four key factors: Momentum, Seasonality, Volatility, and Options.

By assigning a numerical score to each factor, the Q-Score provides a structured approach to market analysis. You can find the Q-Score on the Dashboard.

Take a look at this Tutorial Video on the MenthorQ Score.

Breaking Down the Q-Score Components

Momentum Score

The Q-Score Momentum Model reflects the underlying trend strength of an asset. Our proprietary quant models analyze price action and technical indicators to determine whether an asset exhibits bullish or bearish momentum.

A higher momentum score suggests strong positive price action, while a lower score indicates weakness or potential downside pressure. Traders can use this score to align their positions with prevailing market trends. Our model assigns a score ranging from 0 to 5:

0: Bearish Momentum
3: Neutral Momentum
5: Bullish Momentum

Q Score Momentum — The Menthor Q-Score 63

Seasonality Score

The Q-Score Seasonality Model assesses the historical performance of an asset over a specific time frame. Using 20 years of historical data, our model examines the price behavior of an asset over the next five days and assigns a score ranging from -5 to 5:

-5: Low Seasonality. Indicates a Bearish seasonality
0: No Seasonality. No significant seasonal trend
5: High Seasonality. Indicates a Bullish seasonality

Volatility Score

The Q-Score Volatility Model measures the magnitude of price fluctuations of an asset. Our model assesses realized volatility to determine the likelihood of price swings. The volatility score ranges from 0 to 5:

0: Low Volatility Environment, suggesting minimal price movement.
5: High Volatility Environment, indicating large price fluctuations.

Traders can combine the Volatility Score with IV Rank (Implied Volatility Rank) and Implied Volatility to identify potential volatility arbitrage opportunities. When volatility is low, option premiums tend to be lower, making certain strategies like long straddles less favorable, while high volatility may present opportunities for selling premium.

Q Score Volatility — The Menthor Q-Score 65

Option Score

The Q-Score Options Model ranks an asset based on activity in the options market, providing insight into trader sentiment and expected price direction. The score ranges from 0 (bearish) to 5 (bullish):

0: Strong Bearish Sentiment from the options market.
5: Strong Bullish Sentiment from the options market.

By combining the Options Score with the Momentum Score, traders can gain additional confirmation for potential moves. This forward-looking model integrates key options market indicators to forecast price direction and sentiment shifts.

How Traders Can Use the Q-Score

The Q-Score provides a structured, quantitative perspective on market conditions. Here are some key ways traders can utilize it:

Trend Confirmation: Use the Momentum Score alongside the Options Score to validate bullish or bearish trends.
Seasonal Patterns: Leverage the Seasonality Score to identify historically strong or weak periods for an asset.
Volatility-Based Strategies: Adjust trading strategies based on the Volatility and Option Scores—favoring trend-following trades in low-volatility environments and mean-reversion trades in high-volatility conditions. These two indicators, together with IV Rank can also be great tools for options buyers or sellers
Options Market: Incorporate the Options Score to gauge sentiment and potential shifts in market positioning.

The Q-Score serves as a dynamic tool for traders, helping them adapt to evolving market conditions. By integrating multiple quantitative factors, it offers a holistic view of asset performance. Traders can refine their entries and exits by aligning strategies with momentum, seasonality, volatility, and options activity, enhancing their decision-making precision.

How to build a Quant Strategy using the Menthor Q-Score

The Menthor Q-Score can also be used to create Quant Trading Strategies. Learn how to use our Q-Score to create Quant Trading Strategies using Momentum, Volatility, Seasonality and Options Models.

Check out our Strategies. Access the Documentation with full backtest:

Futures Price Curve

Written by Fabio Ruggeri on February 18, 2025.

The futures market can offer critical insights for traders, especially when assessing price movement over time. One such key concept for traders to understand is the price curve, specifically how it behaves in commodities like Crude Oil (CL). The future price curve of commodities, like Crude Oil, provides a vital indicator of market expectations, volatility, and the impact of different expiry dates. These price curves can significantly help inform decisions in both short-term and long-term trading strategies.

What Is the Future Price Curve?

A futures price curve, also known as a term structure, plots the prices of futures contracts for a commodity across various expiration dates. Traders use this curve to analyze whether the market is in contango or backwardation, helping to inform decisions regarding holding or entering positions.

Contango: This occurs when the futures prices are higher than the spot price, signaling that the market expects the price of the commodity to increase over time.
Backwardation: This is when futures prices are lower than the spot price, indicating that traders expect the price of the commodity to decrease.

The future price curve is valuable because it shows how market participants expect prices to behave as contracts near expiration. It reflects the relationship between spot prices and futures prices over different timelines and can indicate the level of confidence or uncertainty in the market.

Understanding the Futures Price Curve

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Let’s use this chart as an example, we see the future price curve for Crude Oil (CL) dated January 31, 2025. Several key features are evident:

Price Movement Over Time: The curve shows a decline in price as the expiration date moves further out, as evidenced by the color-coded lines.
Green Line (Today’s Price Curve): Represents the price trajectory as it stands at the current moment, offering insight into how the market perceives the future prices of Crude Oil.
Yellow Line (Yesterday’s Price Curve): This shows the market’s previous outlook and can be compared with the green line to understand how expectations have shifted over time.
Red Line (5 Days Ago): This line displays how the market viewed the future prices five days ago, offering historical context for current trends.
Blue Line (1 Month Ago): This offers a broader historical perspective on how expectations have evolved over the past month.

What’s crucial here is that each line represents the price curve at different points in time. By comparing them, a trader can analyze changes in market sentiment, price and volatility. For instance, if the price is consistently moving downward on the curve as expiration dates extend, it might indicate expectations of lower future prices in Crude Oil. In this particular case, the CL price is in backwardation.

How Traders Can Use the Future Price Curve

Traders can use the future price curve to gain insights into the market sentiment for Crude Oil and other commodities. The main strategy for leveraging the price curve is to:

1. Identify Trends: By looking at the change in future prices (across different time periods) and their relationship with the spot price, traders can identify whether the market is in contango or backwardation.

Contango: If the curve shows a steady increase in price as the contract dates extend, it may be an indicator of an expected increase in Crude Oil prices. Traders may choose to hold long positions in the commodity or explore options strategies that benefit from rising prices.
Backwardation: If the futures price is lower than the spot price and the curve shows a downward slope, this signals expectations of a decrease in Crude Oil prices. Traders may choose to take short positions or adjust their risk exposure accordingly. Or this is a situation where the market has a positive roll, so strategies that roll each month benefit.

2. Manage Risk with Expiry Dates: The futures price curve also helps traders gauge the level of risk associated with positions. For instance, holding a long position in Crude Oil with an expiration in six months can expose a trader to more risk if the market is in contango. However, shorter-dated contracts might limit some of that risk, depending on the specific circumstances.

3. Timing Entry and Exit: The future price curve’s movement can also help determine the best times to enter or exit the market. If the market is in contango and futures prices are rising steadily, it may be more favorable to enter long positions in Crude Oil at an early stage. Alternatively, in a backwardated market, it may be wise to take profits as prices reach the peak of their downward trajectory.

Case Study: Crude Oil Futures (CL)

Consider the Crude Oil market as an example. A trader might look at the current future price curve to determine whether it is in contango or backwardation.

Scenario 1: Market in Contango: If the trader notices that the future price curve for Crude Oil is showing a steady increase in price over the next few months (as shown by the green, yellow, and red lines trending upwards), this could signal that the market expects rising prices. The trader could then opt to take a long position on Crude Oil Futures.
Scenario 2: Market in Backwardation: If, instead, the trader notices a downward slope with lower future prices compared to the spot price (indicated by a negative slope in the price curve), the market may expect Crude Oil prices to fall. The trader could then consider shorting Crude Oil futures to benefit from the expected decline in prices.

Case Study: Calendar Spreads with Options.

A calendar spread is an options strategy that involves buying and selling options of the same underlying asset at the same strike price but with different expiration dates. This strategy is typically used to capitalize on time decay and volatility changes. Traders can use calendar spreads to take advantage of market trends like contango and backwardation, depending on the price curve’s shape and the market’s expectations.

Calendar Spreads in Contango

When the market is in contango, futures prices are expected to rise over time, as seen in the upward-sloping forward price curve. This environment can be ideal for calendar spreads, particularly when a trader expects volatility and price increases in the future. In this scenario:

Sell short-term options: You can sell short-term options (closer expiration dates), as these options lose value quickly due to time decay.
Buy longer-term options: Simultaneously, you buy longer-term options (further expiration dates), which should benefit from the rising price of the underlying asset over time.

The trader can profit as the value of the short-term options decays, while the longer-term options may increase in value, reflecting the market’s expectation of higher prices in the future.

Calendar Spreads in Backwardation

In a backwardation market, future prices are lower than the spot price, suggesting that prices are expected to decline. This could occur when the market anticipates a price drop, perhaps due to a supply glut or a sharp decrease in demand. In this situation:

Sell longer-term options: Traders sell longer-term options, which have more time value, expecting them to lose value faster as the market expects prices to decrease.
Buy short-term options: You buy short-term options that are positioned closer to the current market price, benefiting from any near-term price spike or volatility before the market eases.

In a backwardation market, the trader could benefit from a near-term price spike, while the longer-term options lose value due to the overall expectation of declining prices.

Conclusion

The future price curve is an essential tool for traders looking to analyze the market sentiment and make informed decisions based on price trends. By evaluating the slope and shape of the curve, traders can determine whether the market is in Contango or Backwardation, giving them a deeper understanding of price movements and helping them time their positions better.

For futures traders or option traders that look at futures, this tool is especially powerful as it allows traders to align their strategies with the expectations embedded in the market’s pricing. By combining the future price curve with other technical indicators and trading strategies, traders can effectively manage their portfolios and maximize their trading potential.

Quantower Integration

Written by Fabio Ruggeri on November 25, 2024.

In this article you will learn how to set up the Menthor Q Indicators for Quantower. You can now access Gamma Levels and Blind Spots Levels on the platform. You can now integrate the MenthorQ data into Quantower directly via API.

What is Quantower?

Quantower is a comprehensive, multi-asset trading platform designed to cater to both novice and professional traders. It offers a wide array of analytical and trading tools, supporting various asset classes such as equities, futures, options, ETFs, and Forex. Check out the Website.

Indicator Features

Within the Indicator you have the following features:

Integration via API
Full Customization of Levels Plots and Labels
Access Multiple Levels Type:
- Gamma Levels
- Gamma Levels Intraday
- Gamma Scalping
- Gamma Scalping Intraday
- Blind Spots
- Swing Levels
Levels Conversion. You can convert all Levels Type from one asset to the other using Auto or Manual Ratio

How to integrate MenthorQ Levels on Quantower

Integrating the MenthorQ Levels into Quantower is very simple. To do so follow these Steps:

Log into your Account Dashboard and go under Integration. Locate the Quantower section and download the indicator.
Paste the indicator in the following folder within your computer: C:\Quantower\Settings\Scripts\Indicators
Fill up the Activation Form. You will be need to confirm your Machine ID

Check out the Video Tutorial.

Configure the Indicator on Quantower

Once downloaded the indicator go into your Quantower Indicator List and look for the MenthorQ Levels Indicator.

Step 1. Add your API Key

Scroll down the Indicator Settings and add your API Key. You can retrieve the API Key within the MenthorQ Account Dashboard.

Quantower API — Quantower Integration 75

Step 2. Choose Level Type

You can select what types of Levels you want in your chart and the Gamma Model. You can add Gamma Levels, Swing Levels (when available) and Blind Spots Levels.

For Gamma Levels we have 2 Models:

Gamma Levels. Those are the main MenthorQ Gamma Levels.
Gamma Scalping. This model allows you to access more gamma levels within a smallare range. Tailored for Futures Traders who are looking at tight areas for scalping.
Blind Spots Levels. You can learn more about Blind Spots here.

Quantower Levels Type — Quantower Integration 76

Step 3. Customize the Levels Font and Color

You can customize each level font, style and color directly from the Settings Tab.

Custom Settings Quantower — Quantower Integration 77

Step 4. Levels Conversions

Within Quantoweryou can now convert Levels from one asset to the other. For example you can do the following conversions:

Convert End of Day SPX Gamma Levels to ES
Convert Intraday QQQ Gamma Levels to NQ
Convert QQQ Blind Spots Levels to NVDA
Convert GLD Swing Levels to GC

Note: Conversion works with Auto and Manual Ratio. For more information about Levels conversion check out our Tutorial Videos on our Trading Integrations Course.

Levels Conversion Quantower — Quantower Integration 78

Converted Levels Qauntower — Quantower Integration 79

Thinkorswim Integration

Written by Fabio Ruggeri on November 25, 2024.

In this article you will learn how to set up the Menthor Q Indicators for Thinkorswim (TOS). You can now access Gamma Levels and Blind Spots Levels on the platform.

What is Thinkorswim (TOS)?

Thinkorswim is a top-rated trading platform trusted by traders worldwide. Known for its comprehensive tools and user-friendly interface, Thinkorswim is consistently recognized as an industry leader in the trading community. Featuring advanced analytics, customizable charting, and seamless order execution, its integration capabilities allow access to cutting-edge tools like Menthor Q’s actionable insights for enhanced market analysis.

How to integrate MenthorQ Levels on Thinkorswim

Here is how to set up the Thinkorswim indicators on your platform:

Step 1. Download the Indicators

Once you join the Premium Membership you will have access to your Account Dashboard and you can find the Thinkorswim section under the Integration tab.

Step 2. Click on Studies and Edit Studies

Click on the Studies – Edit Studies and once the window opens click on Import.

TOS Import Studies — Thinkorswim Integration 84

Then select the Custom Study you downloaded from the MenthorQ website.

Step 3. Add the Study to the Chart

Once you import it the study will be available on the left side under studies just search for the name and double click it will be loaded into the chart.

TOS add study — Thinkorswim Integration 85

Step 4. Indicato on the Chart

Now once you click apply your indicator will be in the chart.

TOS Gamma Levels — Thinkorswim Integration 86

Step 5. Customize the Settings

To customize the Settings click on Edit Studies and go into the indicator settings. You can customize the Value of the levels, the color of the lines and format and more.

Due to TOS Limitations you would need to manually change the values of the levels you want to plot on your chart from the settings section.

TOS Settings — Thinkorswim Integration 87

Morning Preparation with MenthorQ

Written by Fabio Ruggeri on October 12, 2024.

In this guide we will show how to use the MenthorQ Data for your morning preparation. It takes only a few minutes.

1. Liquidity Snapshot

You can access the Liquidity Snapshot by typing the /liq_snapshot command on the Query Bot. Within this screen we particularly monitor the following data points:

Negative Gamma indicates potential for sharp price swings.
- Negative GEX: Dealers hedge into trend, regardless of direction = Removes liquidity
- Positive GEX: Dealers hedge against trend, regardless of direction = Adds liquidity
Bullish Momentum signals upward price movement.
IV30 vs HV30: Implied volatility is lower than historical volatility, which suggests the market may be calming down after a period of higher actual volatility. This combination can influence both directional and volatility-based trading strategies.
The Put/Call Open Interest Ratio compares the number of open put options to call options. A ratio of 2.56 suggests that there are more put options being traded compared to calls, which might indicate a bearish outlook from option traders, despite the bullish momentum.

Liquidity Snapshot Morning Preparation — Morning Preparation with MenthorQ 95

2. Option Matrix

Next we will look at the Option Matrix. The Matrix simplifies the read of the Option Chain for any assets within our coverage. You can access the Matrix using the command /matrix in the Query Bot.

NVDA Matrix — Morning Preparation with MenthorQ 96

When GEX is positive, expect a more stable market with limited price swings. It’s often a signal that mean reversion trades (buying dips, selling rallies) could be effective.
When GEX is negative, expect more volatile markets with larger price swings. In this case, you might look for momentum trades, riding trends rather than fading them.
When DEX is positive, expect potential upward pressure on the market. If you’re seeing strong support levels and rising prices, it could be a sign to enter long positions, especially if you’re riding the momentum.
When DEX is negative, expect downward pressure. In this case, you might want to be cautious with long positions or look for opportunities to short if the market shows signs of weakening.
High Positive GEX + Positive DEX: Indicates a potentially bullish environment with stable upward pressure. You can look for long setups, especially if the market shows resilience on pullbacks.
Negative GEX + Negative DEX: Indicates a potentially bearish and volatile market. Here, you might look for short setups or be cautious about long trades.
Mixed GEX and DEX (e.g., positive GEX with negative DEX): This could indicate a choppy market, where the price might be stuck in a range or show unexpected volatility. In this scenario, shorter-term trades with tighter stops might be necessary.
Expiry Exp. Move. This column leverages our Option Implied Move Model to forecast how many points up or below the price can move by the expiration date.

3. Net Gamma Exposure (Net GEX)

Next we will look at the Net Gamma Exposure Chart or Net GEX. You can access the chart by using the /netgex command.

Net GEX Spy — Morning Preparation with MenthorQ 97

This is how we can use this chart:

Predicting Volatility: The chart helps traders identify where market makers’ hedging activity may stabilize or destabilize the market. For example, heavy negative GEX at lower strike prices indicates higher volatility if the price starts to drop.
Support and Resistance: The GEX distribution gives clues to important support and resistance levels (e.g., $540 put support and $570 call resistance). Traders can use this information to make decisions about where to enter or exit positions.
Volatility Zones (HVL): The High Vol Level ($550) marks a zone where price swings could become more unpredictable, which is critical for risk management.

To learn more about Market Reaction Zones check out our Free Course on Gamma Levels.

4. Net GEX Multi-Expiration Chart

On top of the Net GEX Chart we can also analyze Net Gamma Exposure across multiple Expirations. This is very important as we can monitor 0DTE Options Flows and Reaction Zones. You can access this chart by using the /netgex_multiexpiry command on the Query Bot.

Net GEX Multi Expiry SPY — Morning Preparation with MenthorQ 98

This is how we can use this chart:

Anticipating Price Reactions: By studying GEX across different expirations, traders can anticipate how the asset might react at certain strike prices during different trading sessions. This is especially useful near major expiration dates or Mopex (monthly expiration).
Volatility Management: Knowing where negative GEX clusters are across multiple expirations helps traders avoid-or take advantage of-potential spikes in volatility.
Enhanced Strategy Development: This multi-expiration GEX data enables traders to layer their trades around multiple key levels and expiration dates, improving the precision of their strategies.

5. Swing Trading Model

Then we want to look at our Swing Trading Model. We have two time horizons: 5 days and 20 days. You can access it by using the commands: /swing_5d and /swing_20d. You can also add the Swing Levels to TradingView.

To learn more on how to use the Swing Models we have created a Swing Trading Guide and a Swing Trading Course.

Swing Trading Model SPY — Morning Preparation with MenthorQ 99

This is how we can use the model:

Predicts Key Levels for Entries and Exits: The upper band, lower band, and risk trigger provide clear price targets that day traders can use to set entry, exit, and stop levels.
Upper Band: The upper band gives day traders a target for price resistance. If SPY nears this level, it may encounter selling pressure, and traders might look to take profits or initiate short positions.
Lower Band: (Not visible on this portion of the chart but typically shows as a lower boundary) The lower band is the opposite of the upper band and acts as a support level. Traders could use it as a potential buy signal or target for covering short positions, expecting a bounce.
Risk Trigger: This level indicates a key price point where the model expects an important reaction, either as a support or potential breakdown level. Day traders can use this as a decision point, either to tighten stops or prepare for larger moves.

6. Gamma Levels on VIX

After looking at our asset we want to confirm our analysis by looking at the VIX Index. In particular we can look at the VIX Matrix.

Option Matrix VIX — Morning Preparation with MenthorQ 100

Understanding GEX and DEX for VIX options helps traders predict upcoming volatility spikes or calming periods. For example, if GEX is negative and DEX is high, traders can expect heightened volatility, which can influence decisions in both options and futures markets.
The VIX is a direct reflection of market fear and uncertainty. By observing the call resistance and put support levels, traders can get a sense of how much fear (or calm) the market is pricing in at different VIX levels.
Large GEX and DEX values suggest that institutional players are making significant hedging moves, which can influence both VIX options and the broader market. Traders can use this information to manage their positions effectively, particularly during major market-moving events.
The chart gives a granular view of volatility expectations across multiple expirations, helping traders position for both short-term swings and long-term trends in market volatility.

7. CTAs and Systematic Models

The last step is to look at the MenthorQ CTAs Funds Model. Systematic Funds and CTAs are key drivers of liquidity and monitoring their flows is key for any investors. With this model we simplify how you can analyze their liquidity and positioning.

main cta matrix 10 1 — Morning Preparation with MenthorQ 101

This is how we can read the chart:

CTA Position Today, Yesterday, and 1 Month Ago: These columns show how much CTAs are currently positioned in each index, today, how much they were positioned yesterday, and one month ago. This helps traders and analysts track the evolution of CTA positions over time. For example, in the E-Mini S&P 500 Index, there was a slight decrease in the position from yesterday to today, but the position has increased significantly from one month ago. This shows that CAs have been building a long position, potentially influencing upward market moves.
Percentile (1M, 3М, 1Y): These columns indicate how current CTA positions compare to historical positions over 1 month, 3 months, and 1 year. Percentiles show how extreme the current positions are compared to historical data. For example, the E-Mini S&P 500 Index has a 1M percentile of 0.29, meaning the current position is in the 29th percentile over the last month, which suggests it is a relatively moderate position. Higher percentiles indicate more extreme positioning, which can precede large price moves if CTAs start reversing positions.
3M Z Score: The Z score tells us how far the current position is from the mean position over the last three months. A high or low Z score can indicate overbought or oversold conditions. For instance, the E-Mini S&P 500 Index has a Z score of -1.30,
indicating that the current CTA position is significantly lower than the 3-month average, suggesting that the index might be oversold and could see buying pressure if CTAs reverse positions.

We have also created a dedicated Course on how to use the CTAs Models.

The Trader’s Blueprint

Written by Fabio Ruggeri on September 2, 2024.

Trust Your Instincts and Simplify

In the fast-paced world of trading, it’s easy to fall into the trap of overanalyzing every move, every chart, and every piece of news. However, true mastery in trading comes not from overanalyzing, but from clarity, decisive action, and a mindset focused on overcoming daily setbacks. Here’s how you can simplify your approach, stay focused, and tackle the inevitable challenges that come your way.
Author: @daytraderpat

1. Simplify Your Strategy:

Trading strategies don’t need to be overly complex to be effective. Strip your strategy down to the basics—what works consistently, without the noise. Trust your go-to setups and avoid the temptation to tweak every little detail. Remember, simplicity often leads to clarity and better decision-making.

2. Avoid Information Overload:

The more information you try to process, the more likely you are to second-guess yourself. Limit your sources to what’s most relevant to your trading plan. Focus on the essentials—price action, key levels, and maybe one or two reliable indicators. The rest is just noise.

3. Trade with Conviction:

Once you’ve identified a trade, execute with conviction. Hesitation can be costly. Trust your preparation and your trading plan, and avoid the paralysis that comes with overthinking. Not every trade will be a winner, but decisive action is better than missing out due to indecision.

Facing Daily Setbacks: The Real Test of a Trader

1. Embrace Losses as Lessons:

Losses are a natural part of trading. Instead of dwelling on them, use them as opportunities to learn. Ask yourself what went wrong, but don’t overanalyze it to the point of inaction. Learn the lesson, adjust if necessary, and move on.

2. Manage Your Emotions:

Trading is an emotional game. When faced with a setback, it’s easy to get caught up in frustration or fear. Recognize these emotions, but don’t let them dictate your next move. Staying calm and sticking to your plan is crucial, especially after a tough loss.

3. Don’t Chase the Market:

After a setback, the urge to “make it back” can lead to impulsive decisions. This is often a trap. Instead of chasing the market, step back, reassess, and wait for the next clear opportunity. Trading is a marathon, not a sprint—consistency over time is what counts.

4. Focus on Execution, Not Perfection:

No trade is perfect, and not every trade will go your way. Focus on executing your plan consistently rather than trying to time the market perfectly. The goal is steady, incremental gains, not hitting home runs on every trade.

Keep It Simple, Keep It Consistent

1. Stick to Your Plan:

Your trading plan is your roadmap. Stick to it, even when the market throws curveballs your way. Avoid making changes on the fly unless the market conditions fundamentally shift. Consistency in execution will yield better results over time.

2. Daily Routines:

Establish a daily routine that prepares you mentally and emotionally for trading. Whether it’s a morning review of key levels or a post-trade debrief, these routines help reinforce discipline and keep you grounded, no matter what the market does.

3. Avoid Overtrading:

Less is often more in trading. Overtrading can lead to mistakes, increased costs, and emotional burnout. Focus on quality over quantity—wait for the setups that fit your criteria, and don’t feel pressured to trade just for the sake of it.

The Final Word: Clarity Over Complexity

Trading doesn’t have to be complicated. By simplifying your approach, managing your emotions, and focusing on consistent execution, you can navigate the daily setbacks that every trader faces. Remember, the goal is not to analyze every detail, but to make clear, confident decisions based on a well-defined strategy.

In the end, success in trading comes from clarity of purpose, simplicity in action, and the ability to bounce back from setbacks with resilience and focus. Keep it simple, stay consistent, and let the markets work for you.

0DTE Options Trading Strategies

Written by Fabio Ruggeri on August 18, 2024.

In this Guide we will go through 0DTE Options Trading Strategies. The key to success lies in understanding and managing the inherent volatility of these instruments. Unlike traditional options, which might have weeks or months before expiration, 0DTE options are set to expire on the same day they are traded.

This creates a unique set of circumstances where the option’s value is primarily driven by the price movements of the underlying asset, with almost no time value left.

Volatility plays a significant role in 0DTE options trading. As these options have no remaining time value, they become extremely sensitive to changes in the underlying asset’s price.

A small move in the underlying asset can result in a large percentage change in the option’s price, making 0DTE options highly attractive for traders looking to capitalize on short-term market movements. However, this high sensitivity also means that 0DTE options can be quite unpredictable, requiring traders to adopt a structured and disciplined approach.

Key Strategies for Trading 0DTE Options

To navigate the volatility of 0DTE options effectively, traders must employ a combination of strategy, risk management, and the right tools. Here are some key strategies that can help traders maximize their success when trading 0DTE options.

1. Scalping and Day Trading

Given the extremely short timeframe of 0DTE options, scalping and day trading are popular strategies. These approaches involve making quick trades to capture small price movements throughout the day.

Since 0DTE options are highly responsive to changes in the underlying asset’s price, scalping allows traders to take advantage of these rapid shifts. However, this strategy requires a keen eye on the market and the ability to take quick decisions.

2. Selling Credit Spreads

Another effective strategy for 0DTE options is selling credit spreads. This involves selling an option and simultaneously buying another option with the same expiration date but a different strike price. The goal is to collect the premium from the sold option while limiting potential losses with the purchased option.

Selling credit spreads is particularly useful in a high-volatility environment, as it allows traders to benefit from the rapid time decay of the sold option while managing their risk exposure.

3. Iron Condors

Iron Condors are a more advanced strategy that involves selling a put spread and a call spread with the same expiration date, but different strike prices. This strategy is well-suited for 0DTE options because it allows traders to profit from a range-bound market, where the underlying asset’s price stays within the expected range.

The iron condor strategy benefits from time decay, which is accelerated in the final hours of trading, making it an attractive option for traders who anticipate low volatility near expiration.

4. Hedging with Futures or ETFs

Hedging is an essential component of any trading strategy, especially when dealing with the high volatility of 0DTE options. Traders can hedge their positions by using futures contracts or ETFs (Exchange-Traded Funds) that track the underlying asset.

For example, if you’re trading 0DTE options on the S&P 500, you could use the SPY ETF or ES Future to hedge against adverse price movements. This approach helps protect your capital while still allowing you to participate in the potential upside of 0DTE options.

MenthorQ Tools for 0DTE Traders

At MenthorQ, we understand the complexities of trading 0DTE options, which is why we provide a suite of tools designed to help you navigate this volatile environment.

Our platform offers advanced models, allowing you to track key indicators such as gamma levels, skew, and term structure for 0DTEs Options.

1. Tracking Gamma Levels

Gamma is a measure of the rate of change in an option’s delta, which represents the sensitivity of the option’s price to the underlying asset’s price. 0DTE options have high gamma, meaning their price can become very reactive to small changes in the underlying asset’s price.

You can easily integrate MenthorQ Gamma Levels with your favorite platforms. Check out our Integrations.

You can access our Primary and Secondary Levels as well as our 0DTE Levels. You can then monitor our 1D Expected Move Indicator that can provide insights on the daily expected volatility of the asset.

Check out our Backtesting Result of the 1D Exp Move Indicator.

Gamma Levels Stocks 2 — 0DTE Options Trading Strategies 105

2. Analyzing SKEW

Skew refers to the difference in implied volatility between options at different strike prices. By analyzing the skew, you can gauge market sentiment and identify whether traders are paying a premium for puts or calls as the expiration approaches. This insight can be invaluable for setting up trades that take advantage of market biases or mispricings. Read more about the MenthorQ Skew.

We offer 3 types of Skew: 0DTE Skew, 1 Month Skew and 3 Months Skew.

3. Understanding Term Structure

The term structure of options volatility provides a view of how implied volatility is distributed across different expiration dates. For 0DTE traders, focusing on the term structure helps in understanding the market’s expectations for volatility on the expiration day. Our tools at MenthorQ allow you to analyze this structure and make informed decisions about whether to hold or sell your 0DTE options. Learn More about Term Structure.

vix term structure — 0DTE Options Trading Strategies 107

Combining Strategy, Risk Management, and Tools

Successfully trading 0DTE options requires more than just understanding the underlying mechanics; it demands a disciplined approach that combines strategy, risk management, and the right tools. By integrating these elements, you can better navigate the volatile nature of 0DTE options and increase your chances of achieving consistent, profitable trades.

At MenthorQ, we are committed to provide traders with the resources they need to succeed in this dynamic trading environment. Our platform provides the data, insights, and tools necessary to refine your strategies and improve your trading outcomes.

0DTE Gamma Levels and Skew

Written by Fabio Ruggeri on August 12, 2024.

What Are 0DTE Gamma Levels?

Understanding the concept of Gamma is crucial, especially when dealing with Zero Days to Expiration (0DTE) options. Gamma is a second-order Greek that measures the rate of change in an option’s delta relative to movements in the underlying asset’s price.

For 0DTE options, gamma levels are particularly significant because these options are highly sensitive to even the smallest changes in the underlying asset’s price. As the expiration approaches, gamma tends to increase, meaning that the delta can change rapidly.

This makes 0DTE options extremely reactive and, therefore, both an opportunity and a risk for traders. A high gamma level indicates that an option’s price can swing dramatically with small price movements in the underlying asset, which can result in substantial gains—or losses—within a very short time frame.

How to use MenthorQ 0DTE Gamma Levels and Net GEX

Tracking gamma levels is crucial for anticipating significant price movements and managing risk effectively.

How to Use MenthorQ’s Gamma Levels:

What are Gamma Levels. Watch the Video Tutorial
Net GEX Analysis: Our Net GEX chart provides insight into the short-term sentiment within the options chain. Green indicates a higher presence of call gamma, while red signifies more put gamma. This tool acts as an early warning system, helping you anticipate potential market shifts.
Watch our Podcast on Gamma Levels and Net Gamma Exposure
Identifying Reaction Zones: Use our tools to monitor the distance between the current spot price and significant reaction zones. Understanding these zones can help you make more informed trading decisions. Learn About Reaction Zones

Net Gamma Exposure 2 — 0DTE Gamma Levels and Skew 114

Net Gamma Exposure (Net GEX) and Market Sentiment

Net GEX is a proprietary metric that shows the net exposure of gamma in the market.

A positive Net GEX value indicates that call gamma dominates, which often suggests bullish sentiment.
A negative Net GEX value signals that put gamma is more prevalent, pointing to bearish sentiment.
By tracking Net GEX, traders can understand market expectations and adjust their positions accordingly.

We also provide Gamma Exposure Levels on 0DTE, Weekly and Monthly Expirations. You can access this data in one single chart grid.

0DTE Multi Expirations — 0DTE Gamma Levels and Skew 115

Bot Commands: To access this charts you can use the /netgex or /netgex_multiexpiry command

Market Reaction Zones

Another crucial aspect of tracking gamma levels is identifying reaction zones—price levels where the underlying asset is likely to experience significant movement due to concentrated options activity.

At MenthorQ, we provide tools that help traders pinpoint these reaction zones, allowing for more precise entry and exit points. Reaction zones can serve as early warning signals for potential price reversals or accelerations, helping traders to position themselves advantageously.

Analyzing Open Interest and Volume

Open Interest and Volume are critical metrics for understanding the dynamics of 0DTE (Zero Days to Expiration) options trading. Open Interest represents the total number of outstanding options contracts that have not been settled, providing insight into the liquidity and activity levels of specific options.

High Open Interest in 0DTE options can indicate significant market interest and potential for substantial price movement as traders adjust positions rapidly throughout the trading day.
Volume, on the other hand, reflects the number of contracts traded within a given period. For 0DTE options, high volume signals active trading and can lead to increased volatility, as these contracts are highly sensitive to market movements.
Together, Open Interest and Volume offer valuable information about market sentiment, potential price action, and the underlying forces driving short-term options trading.

We provide different charts for Open Interest and Volume within the Membership. These are the Bot Commands:

/voloi – provided the Volume and Open Interest data for All Expirations
/voloi_0dte – provides the Volume and Open Interest data for 0DTE Expiration
/voloi_1dte – provides the Volume and Open Interest data for the next Expiration

Volume Open Interest — 0DTE Gamma Levels and Skew 116

What Is the 1D Expected Move Indicator?

This tool forecasts the next day’s price movement by analyzing implied volatility, providing a projected trading range that is invaluable for intraday trading and risk management. Learn More.

How to Use the 1D Expected Move Indicator Daily Trading Band: Use the projected price range to identify key support and resistance levels for the trading day, guiding your 0DTE strategies.

QQQ 1D Move — 0DTE Gamma Levels and Skew 117

Learn How to Use the 1D Expected Move Indicator. Watch Now
Bactesting Results of 1D Expected Move Indicator. Learn More

Bot Commands: /keylevels

Positive and Negative Gamma

It is very important for Traders and Investors to understand the difference between Positive and Negative Gamma when trading any asset, because these gamma conditions can significantly impact their investment strategies and risk exposure.

In Positive Gamma the Market is Long Gamma and we can expect lower volatility
In Negative Gamma the Market is Short Gamma and we can expect higher volatility

We can use the Option Matrix to identify whether the market is in a positive or negative gamma environment, helping you gauge potential price stability or volatility based on the aggregated positioning of options traders.

Option Matrix NEW — 0DTE Gamma Levels and Skew 118

Watch our use cases videos:

How to prepare for a Market Sell Off and Increased Volatility. Watch Now
Positive and Negative Gamma. Learn More

Bot Commands: /matrix, /matrix_v1 and liq_snapshot

TradingView Bots Commands: /tv_list, levels_tv, /tv_toptk, tv_futures, tv_bonds

Analyzing 0DTE Skew

What Is Skew and Why Is It Important?

Skew refers to the difference in implied volatility (IV) between options at different strike prices. In 0DTE trading, skew analysis helps you gauge market sentiment and identify potential trading opportunities.

In a perfectly balanced market, the Implied Volatility across different strikes would be similar. However, in reality, this is rarely the case. Skew occurs when there is a noticeable difference in Implied Vol, indicating that traders are willing to pay more for options on one side of the market—either puts or calls—based on their expectations of future price movements.

For 0DTE options, skew becomes an even more critical factor. As the expiration date approaches, any existing skew can intensify, leading to significant price disparities between options with different strike prices.

How to Analyze Skew with MenthorQ

Market Sentiment: Use skew analysis to understand whether traders are leaning towards calls or puts as expiration approaches, providing insight into market expectations. Watch Video
Strategy Optimization: Identify and capitalize on overpriced options using strategies like iron condors.
Watch the Iron Condor Strategy Video: Watch Now

We provide 3 types of Skew:

/skew – 1 month Skew
/skew_0dte – 0DTE Skew
/skew_3m – 3 Months Skew

Blind Spot Levels Indicator

Written by Fabio Ruggeri on May 18, 2024.

1 Day Expected Move Indicator

Written by Fabio Ruggeri on May 18, 2024.

Gamma Levels on Futures

Written by Fabio Ruggeri on May 18, 2024.

CTAs Models

Written by Fabio Ruggeri on May 18, 2024.

0DTE Levels

Written by Fabio Ruggeri on May 18, 2024.

Volume and Open Interest

Written by Fabio Ruggeri on May 18, 2024.

Option Matrix

Written by Fabio Ruggeri on May 18, 2024.

Net Gamma Exposure

Written by Fabio Ruggeri on May 18, 2024.

Gamma Levels on Futures Options

Written by Fabio Ruggeri on May 6, 2024.

Menthor Q is excited to provide Gamma Levels on Futures Options.

We have created a dedicated Guide on Futures Options.

Futures Options allows investors more flexibility as well as allowing better risk management.
Futures also have their own options chain compared to the spot or index asset. For example we can use SPX Options as well as ES Future Options.
While traditional Options gives you the exposure to 100 shares of the underlying, Futures Options gives the exposure to 1 Future Contract.

Check out the video on Menthor Q Futures Options!

What Market or Futures does Menthor Q cover?

We are going to cover the following Markets and Futures:

Index Futures: S&P 500 (ES), Nasdaq (NQ), Russell 2000 (RTY)
Energy: Crude Oil (CL), Natural Gas (NG)
Metals: Gold (GC), Silver (SI), Platinum (PL), Copper (HG)
Rates: 2Y Treasury (ZT), 5Y Treasury (ZF), 10Y Treasury (ZN), 30 Treasury (ZB)
Forex: EUR (6E), AUD (6A), GBP (6B), JPY (6J), CAD (6C), CHF (6S)
Soft Commodities: Corn (ZC), Wheat (ZW), Soybean (ZS)

FUTURES COVERAGE — Gamma Levels on Futures Options 128

Here you can find our Excel File with the list of Futures Tickers available and our Coverage.

Menthor Q Futures Ticker List

Ticker Convention for Futures

A futures ticker symbol is a unique series of letters and, in some cases, numbers, representing a specific futures contract traded on a futures exchange. It is important to understand how a futures ticker works is crucial for traders and investors to track and trade futures contracts accurately.

Components of a Futures Ticker Symbol:

Base Symbol: The first part of the ticker represents the underlying commodity or financial instrument. For example, “CL” stands for Crude Oil on the New York Mercantile Exchange (NYMEX), and “ES” represents the S&P 500 E-mini futures contracts on the Chicago Mercantile Exchange (CME).
Expiration Month: Futures contracts have expiration dates, and each month is represented by a specific letter. For instance, “F” denotes January, “G” for February, “H” for March, and so on through the calendar year.
Expiration Year: The last part of the ticker usually consists of one or more digits indicating the year of expiration. For example, “1” might represent 2021, “2” for 2022, etc. The format can vary between exchanges and can include the last one or two digits of the year.

Example of a Futures Ticker Symbol:

Let’s take for example the January Contract 2023 for Crude Oil. The ticker is CLF2023. This is how it can be composed:

CL = Crude Oil
F = January
2023 = 2023

Each calendar month expiration is identified by a single letter as follows:

January – F

February – G

March – H

April – J

May – K

June – M

July – N

August – Q

September – U

October – V

November – X

December – Z

How to request Futures Tickers via the Bot

Given our Integration with TradingView we are using the TradingView Ticker Convention. To request data on a Future you can do it in two ways:

Generic. We can use the Generic Ticker. For example ES1! will represent the next expiration contract for ES. In the case of Russell we can use RTY1!, NQ1! for Nasdaq, CL1! for Crude. You can apply the same process for all futures.
Contract Ticker. You can also use the contract ticker within the Bot. If you were looking for the June 2024 contract for Gold you could use GCM2024, if you wanted the July 2024 Contract for Crude you could use CLN2024. You can do the same for all other contract.

What Data can I access on Futures?

Within our Premium Membership you will be able to use our Discord Bots to query the data.

TradingView Levels

You can access Futures Gamma Levels directly into TradingView. First you can set up the Menthor Q Levels indicator.

You can use the /levels_tv command for single ticker levels or the tv_list for multiple ticker levels.

Net Gamma Exposure

What this chart does is calculate the Overall Net Market Exposure on the asset by looking at the options data. It calculates if we are in positive or negative gamma and the gamma exposure at different strike prices.

We know that if there is a large gamma at a specific price this will represent a reaction zone if those levels are reached. This chart also allows us to understand if the sentiment is bullish or bearish on the asset.

Wide green bars represent a large options positioning on the calls and wide red bars indicate a large positioning on puts. We also want to monitor day by day the change in positioning and how these levels shift. To access this chart use the command: /netgex

Net Gamma Exposure Multi Expiration

Similar to the previous chart we calculate Net Gamma Exposure for Multiple Expirations. Here you can find a grid with 4 charts:

First Expiration
Next Expiration
Expirations with highest Net GEX. Here we want to look for the expiration with the highest concentration of Gamma

To access this chart use the command: /netgex_multiexpiry

Volume & Open Interest

You can access the Command on Volume and Open Interest for the Asset. Here you can use the /voloi command for All Expirations or the /voloi_0dte for the next expiration.

volume oi — Gamma Levels on Futures Options 132

Option Matrix

You can access the Menthor Q Option Matrix on Futures. We simplify the option chain and calculate the levels for every expiration in the future. Use the /matrix command to access it.

Liquidity Snapshot

To access Gamma Condition and Volatility of the asset you can use the /liq_snapshot command. This will allow you to understand if we are in Positive or Negative Gamma.

Key Levels Table

You can then access the Data via our Key Levels Table using the /key_levels command.