Understanding Correlation and Volatility in the Stock Market Introduction This video sheds light on the concepts of stock volatility and correlation, particularly focusing on how correlation metrics influence market behavior and volatility trends. This post will summarize the key points discussed, emphasizing the impact of correlation on volatility and market dynamics. Correlation Metrics and Their […]
Market Analysis
TrendSpider: SpotGamma’s Latest Integration
You’ve asked for it – and we’ve delivered! This has been one of the most requested integrations by our respective communities: SpotGamma’s key trading levels are now live within the TrendSpider platform. What is TrendSpider? TrendSpider is a powerful charting software designed by traders for traders. It offers a comprehensive and modern trading solutions that […]
NVIDIA Rejection at Call Wall Triggers Intraday Selloff as SpotGamma Delivers High-Conviction Short Setup
When large amounts of Gamma are set to expire and price approaches key resistance, volatility and directional moves can accelerate quickly. NVIDIA (NVDA) provided a textbook example of this dynamic, as a rally into a major call wall led to a sharp reversal driven by options positioning. With heavy Call Gamma dominating the structure and […]
Stock & Bond Correlations: “No Crying in Correlation”
Alpha Exchange
S&P 500, Correlation & Low Volatility: The Big Trade Underneath the Strangely Calm Surface of the S&P 500 | Odd Lots
In the latest episode of Odd Lots, Tracy Alloway and Joe Weisenthal explore current market conditions, emphasizing the interplay between dispersion, correlation, and volatility. The episode, recorded on June 13, highlights how the S&P 500 has consistently shown upward momentum, albeit with minimal daily gains. The discussion introduces the concept of the dispersion trade, which […]
OPEX Effect: June is Call-Bloated
In The OPEX Effect: June 2024, Brent Kochua and Jack Forehand discuss the impact of options expiration (OPEX) on market volatility and specific stocks, such as Nvidia. During periods of low market volatility, significant call positions expiring can lead to increased market movement and volatility. They mention the influence of JP Morgan’s collar positions on the […]
The Downside of Call Selling Funds
Last week, our founder Brent Kochuba attended the EQ Derivatives conference in Las Vegas. The conference attracted attendees from various backgrounds, including pension funds, sell-side firms, exchanges, and fund providers. One of the hottest topics over the two days of presentations was the proliferation of systematic call overwriting. The interest in this discussion was driven […]
GME Options Implode – The Tax of IV Decline
$GME vol has totally faded, just like the interest in @TheRoaringKitty twitter feed (sooo many video clips – that can’t be him posting). Anyway, here we see the peak in 1-month IV at +340% on Tuesday (yellow) when the stock hit >$60. Stock up, vol up. Now the IV’s (and GME’s stock price) have come […]
Unpacking May OPEX: How Will Low Volatility and NVDA Earnings Shape The S&P 500?
Key Points: A Brief Synopsis: Large call positions are driving low volatility into May options expiration. The expiration of call positions lines up with several key data points (Fed Speaking, CPI) which may cause volatility to briefly expand into the end of this week (Friday, 5/17), and into VIX expiration & NVDA earnings on 5/22. […]
Is the Unprecedented Market Calm Driven by 0DTE and Overwriting ETF’s?
In the presentation and outline posted below, SpotGamma presents a view that equity markets are experiencing dramatically low levels of volatility. The generally low levels of volatility are likely in response to both monetary & fiscal policy, globally, as low volatility is seen across many assets and regions. However, we believe that the impact of […]