SPY closed down 2.6% on Friday, with option expiration easing negative gamma selling pressure

According to former hedge fund analyst Alphatica, SPY (S&P 500 ETF Trust) closed at $737.55 on Friday, down 2.6% in a single day. The expiration of the option cleared a negative gamma of up to $871 million at the exercise price of $740, causing the total negative GEX to drop from its intraday peak of $1.847 billion to $868 million, reducing selling pressure. Multiple indicators turned short: the comprehensive score was -22.9, the IV skewness reached+5.35%, and the daily bearish premium reached $3 billion. The rebound factors include Vanna reading reaching 190800, and if IV falls from 15.7% or triggers buying. Alphatica stated that the market will face two possible scenarios on Monday, and attention needs to be paid to whether institutions will rebuild the market structure.