Brent Kochuba, Founder of SpotGamma, spoke on Twitter Spaces with Michael Gayed about the current options landscape including: implied volatility compression, 0DTE and market risks moving forward.
Market Analysis
The Silicon Valley Bank Collapse and How the Options Market Reacted
The VIX Jumps, Shocking Record Put Volumes and Real Tail Risk With the SVB risks, we see a shift higher in options tail risk pricing, but not a surge in open interest at a macro level. KRE, the Regional Bank ETF, saw record put volume, and there is record VIX call open interest. XLF and […]
March 2023: New Equity Hub Launch, Call Wall and Put Wall Alerts, and Q&A
SpotGamma has just launched its new Equity Hub dashboard and alert features, which offers a mobile-friendly, modern interface. New additions include Call Wall and Put Wall alerts that light up when corresponding walls are breached or tested. The upgrades aim to help users make more informed decisions and act as highly actionable levels of support […]
How 0DTE (Short-Dated) Put Buyers Can Lead the Market Lower
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 […]
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 […]