Hermēs DocumentationEquity Options Playbook
Trade single-name and ETF options with Hermēs — find institutional direction with UOA whale flow, read sector and VIX lead with the correlation matrix, locate levels with single-name GEX (distinct from index GEX), and manage IV crush through earnings.
How does an equity trader make money with Hermēs?
The equity trader's game is "find the flow → read the coupling → locate the level → manage the event." Hermēs extends dealer hedging flow from indices to single names and ETFs — the Ticker Selector now splits into Futures / Index / ETF / Stocks · Weighted / Stocks · Momentum / Stocks · Extended / Crypto. The equity trader captures institutional direction with the UOA whale scanner, reads sector and VIX lead with cross-asset correlation, and locates levels with single-name GEX — stacking these into a directional or structured position.
This chapter targets Ultra subscribers (all 28 tickers, single-name options, UOA scanner, cross-asset correlation matrix). For foundations, read What is GEX and the Options Trader Playbook first.
Step 1 · Find the flow: UOA whale scanner
Institutional direction hides in unusual options flow, not in price. Use the UOA Scanner (Whale Signals) to sweep single names and ETFs in real time:
| Signal | Meaning |
|---|---|
| Vol/OI ratio anomaly | volume far exceeds open interest → new positioning (not closing), institutions building a new direction |
| Large sweep | orders grabbed across exchanges → urgent directional bet |
| Single-leg anomaly | concentrated volume at one strike / expiry → a clear directional view |
The scanner filters noise by Vol/OI ≥ threshold and Vol ≥ threshold, auto-refreshes every 60s, and groups by ETF/Index or Stocks. Use the "Morning Scan" template to run pre-market brief → unusual flow → whale prints → GEX structure on one screen.
Unusual ≠ bound to rally. A big print can be a hedge, not speculation. Always confirm with the stock's GEX regime and the correlation matrix — don't chase a single print.
Step 2 · Read the coupling: cross-asset correlation
Single names don't move in isolation. Use Correlation to read the Pearson heatmap of Zero-Gamma levels across tickers:
- VIX lead: VIX GEX changes often lead SPX/ETF price — weakening VIX GEX signals risk appetite returning.
- Sector coupling: when a weighted name (Stocks · Weighted) is highly correlated to its index / ETF, index GEX walls can serve as an indirect reference for the component.
- Divergence alert: when a name's correlation to its sector / index suddenly weakens, it often precedes a single-name event (earnings, M&A, regulation).
Pair with the Market State ticker scan to see instant gamma regime and walls across many tickers — quickly shortlisting "which names are worth watching today."
Step 3 · Locate the level: single-name GEX ≠ index GEX
Don't use single-name GEX like index GEX. Index walls are stable, good for pins; single-name walls are fragile, easily reshaped by one large print or earnings.
| Dimension | Index GEX (SPX/NDX) | Single-name GEX |
|---|---|---|
| Concentration | dispersed, multi-expiry | highly concentrated at few strikes |
| Wall stability | stable, good for range pins | fragile, jumps often |
| Main driver | broad hedging flow | single large prints, earnings, M&A |
| Use | structural support / resistance | event-driven reaction levels |
In the single-name Option Chain, read real bid/ask and per-strike volume/OI (live); Greeks/IV update hourly. Use the single-name GEX Data Center to confirm whether a wall is a "cross-expiry structural level" or "pure 0DTE liquidity" — the former is more reliable.
Step 4 · Manage the event: earnings weeks and IV crush
Earnings are the biggest double-edged sword in equity options.
Pre-earnings: spot elevated IV
Use Vol Intelligence to see whether the stock's IV Rank has spiked on earnings anticipation. At very high IV Rank, the implied cost of naked long options is expensive.
Choose structure: sellers harvest, buyers cap risk
- Sellers: use defined-risk spreads (vertical / condor) to collect the earnings-inflated premium and bet on post-earnings IV crush.
- Buyers: avoid naked ATM; switch to spreads to reduce Vega exposure, or wait for IV to normalize post-earnings.
Post-earnings: IV crush realizes
After the print, IV usually drops sharply regardless of direction. Seller structures benefit (short Vega); naked buyers may not profit — or may lose — even when direction is right, due to vol collapse.
See IV vs Realized Vol and Skew & Smile.
The equity trader's day
Pre-market · morning scan
"Morning Scan" template: pre-market brief → UOA unusual flow → whale prints → GEX chart. Shortlist 3–5 names with institutional activity.
Open · correlation confirm
Cross-asset correlation + market-state scan to confirm the candidate's coupling to its sector / VIX, filtering out isolated noise.
Locate · single-name GEX
For the chosen name, read single-name GEX walls and the option chain to set reaction levels and strikes.
Execute · structure + risk
Build legs via the four-step options loop, size with the position sizer, and watch IV crush especially on earnings weeks.
FAQ
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Frequently asked questions
How does the equity trader differ from the futures trader in Hermēs?
The equity trader trades single-name and ETF options (SPY / QQQ plus Stocks · Weighted / Momentum / Extended), with the UOA whale scanner, cross-asset correlation matrix and single-name option chain as core weapons — not the futures trader's intraday ES/NQ chart. The equity trader finds institutional direction from unusual flow, reads sector coupling and VIX lead from correlation, and locates levels with single-name GEX. Requires Ultra for all 28 tickers and single-name options.
How does single-name GEX differ from index GEX?
Index GEX (SPX/NDX) reflects dealer hedging on broad indices — stable walls, good for pin analysis. Single-name GEX is more concentrated and more easily reshaped by a single large print or an earnings event; walls are fragile and jump more often. Treat single-name GEX as event-driven reaction levels, not stable structure like the index.
How should I handle IV crush on earnings-week options?
A stock's IV runs up before earnings, then drops sharply afterward regardless of direction (IV crush), so naked long options often lose to vol collapse. Check IV Rank in Vol Intelligence to see if it's elevated pre-earnings; sellers use defined-risk spreads to harvest the inflated premium, while buyers switch to spreads or wait for IV to normalize post-earnings.
Options Trader Playbook
The options trader's four-step loop in Hermēs — pick the regime with IV Rank + VRP, map 8 regimes to structures, build and verify legs in the Strategy Lab, and manage risk with position sizing and Greeks attribution.
The Four-Input Morning Prep Framework
A professional ES trader's pre-open routine — overnight structure, volume profile, GEX walls, and MBO order flow, four layers of confluence into a trade plan