0DTE Options trading continues to capture the attention of traders, as it appears to drive market behavior. Consider this quote from SpotGamma Founder Brent Kochuba, in a recent 0DTE Bloomberg article: “To Brent Kochuba, founder of SpotGamma, the explosive rise of 0DTE options has actually acted as a positive market force. He conducted a study […]
Market Analysis
Is The Market Under Control of 0DTE Options Flow?
Through SpotGamma’s unique HIRO real-time options flow tool, we have been documenting the impact of 0DTE short dated options flow. This action is clearly laid out in the video below from Thursday, February 23rd: This quote from BOFA’s recent research piece on 0DTE short dated options flow tells us that its actually 0DTE buyers in […]
No, 0DTE Will Not Result In “Volmageddon:” BofA Derivative Gurus Respond To Kolanovic
0DTE is not Volmageddon 0DTE is likely not Volmageddon per BOFA, and for that to happen you would need a major 0DTE flow imbalance. This is exactly what SpotGamma laid out to members on our Feb 2nd Q&A, here. Courtesy of ZeroHedge Wednesday, Feb 22, 2023 – 05:25 PM One week ago, JPMorgan’s Marko Kolanovic, […]
SpotGamma on Piper Sandler “Options Roundtable” Podcast
Brent Kochuba, Founder of SpotGamma, joined Piper’s Head of Options Trading Danny Kirsch to talk about 0DTE, and the options volatility space. Listen to the audio, here.
A Link Between 0DTE & Treasury Auctions?
SpotGamma recently began investigating a link between 0DTE options volumes and treasury auctions. The first research was posted in our Founder’s Note, and picked up by ZeroHedge: From ZeroHedge: Bonds and stocks were nicely correlated after the US cash open and traded in sync before decoupling around the European close… However, zooming in on the […]
Nomura on 0DTE Options Volumes
From Eric Wallerstein @WSJ: “Nomura’s Charlie McElligott on 0DTE options: Volumes aren’t inherently a sign of apocalypse: flow can exacerbate intraday moves, BUT much of the volume likely electronic market makers trading for risk positioning, creating noise that can ‘net out’.” “However, potentially an arbitrage opp because no need to post margin with prime brokerages […]
Implied Volatility Compresses at Stock Market Highs
SpotGamma sees evidence that we are at an interim high due to implied volatility compressing at levels which are near long term rates of realized volatility. In the chart below we have the SPX (green), 1 month realized volatility (RV), or, how much the SPX has been moving (orange), and 1 month implied volatility[IV], which […]
Get Comfortable with VIX Up, Market Up
TL;DR: SpotGamma believes that there will be many periods of high call buying as traders protect against missing market rallies. 2023 will be the year that the VIX index shifts from being known primarily as a “fear indicator” to the “fear of missing out indicator.” This is because traders will be increasingly concerned about missing […]
The Record Put Call Ratios Do Not Mean What You Think
A great deal has been made recently about the record CBOE Equity Put Call ratio, with many speculating this metric had dire implications. These alarmists assume that this metric is suggesting large amount of puts are being purchased in order to hedge downside movement in single stocks. SpotGamma’s has made an extensive effort to dispel […]
Trading Options Against Resistance
Using the Founder’s Note to Structure Trades In this video SpotGamma highlights how subscribers can use the concepts laid on in our Founder’s Notes to inform trade ideas. Here we analyze why we think there is heavy resistance at market prices above, and suggest a few ways traders can consider playing that resistance. No matter […]