NOPE: A Primer

NOPE (Premium and Free) has come to unusual whales.

With that, let’s break down the tool, and talk about how to use it.

But first, a classic question, What is NOPE?

Check out NOPE here.

NOPE is the Net Options Pricing Effect, which tracks the intraday net delta of any ticker, but most research has been done on indexes.It functions under 2 assumptions:
1) MM’s take short side of any call or put traded during the day
2) MM’s try to minimize risk by dynamically hedging their delta-gamma exposure, and do so by buying/shorting the underlying stock in proportion to the total net delta being tradedBased on these assumptions, options trading in large amounts (re: very liquid tickers) can potentially drive the price of the underlying, to a certain extent. Large movements might exacerbate this real time hedging, and drive price movements further in respective directions.This is similar to the theory of gamma flips, which I have written about here:

In short, NOPE represents a best-estimate of expected number of shares to be hedged at any given time, and will show a general expected direction on the underlying

Now, how to read and use NOPE Premium

This is the NOPE premium landing page. Here, you can find the NOPE algorithm, tracking the intraday net delta of any specific ticker. This is a day trading tool that has some seasonality, but I will talk more about that in the future.

1) Select your ticker (there are many)
2) View today's NOPE, or historical NOPEs
3) Settings (you can adjust notifications on alerts, turn on/off different features, and more)
4) Socials (tbd what is to be done with these, but for now, they stay with NOPE)5) How to use: view this thread, or check guide if you need a refresher
6) Shows NOPE and divergence on NOPE across all tickers
7) Refreshes the data feed

The main chart:

This is the NOPE tracker. It will show you you the current nope levels, along with historical reversion points, which will be flagged bullish or bearish.

to note, these are not exact signals, they are just statistical levels NOPE has reverted.

In other words, a bullish signal doesn't always mean that stock goes up, and a bearish signal doesn't always mean it goes down.

The average reversion time is ~30 minutes (when nope exceeds/falls below previous alert level) but it's not exact. As with all indicators, they are to be taken with a grain of salt, and are never guaranteed profits.Next, you have Share volume (1 minute), Relative Average Volume (whether the ticker is seeing higher or lower volume than usual), and a time window panel to select a time intervals for more visibility.

Now, there is a free version of NOPE, which is just NOPE and the stock price, and it would be up to you, the trader, to determine the signals.

However, it is the same NOPE, and the same tickers, so it will be 100% okay to use, should you not want to spend money on premium NOPE.

What features DON'T you have with NOPE free?
Volume, Relative Average Volume, time window, Candlesticks on the charts, customizability with main chart, historical bullish and bearish signals, and candlestick charts.That's basically all there is to NOPE premium and NOPE free. NOPE is an intraday mean reversion indicator, and functions on the premise that there is a market "equilibrium" that happens in each trading session.

There is still plenty of research to be done on this tool at @unusual_whales, but in the mean time, I hope it helps your trading strategy.

If you have any questions or comments, please let me know on twitter @falcon_fintwit

Hope you learned something new today.