Understanding the dynamics of options pricing is essential for anyone delving into the world of options trading. Among the various factors affecting options prices, changes in interest rates play a significant role. In this article, we’ll break down the relationship between interest rates and options prices, and how to navigate this complex landscape. The Basics […]
Market Analysis
VVIX, Vol-of-Vol and Stock Market Returns
After the market close on August 1st, the Fitch rating agency downgraded US debt. This brought a bit of volatility to US stock markets on August 2nd. The downgrade was the first such occurrence since Standard & Poor’s downgraded the U.S.’s long-term sovereign credit rating from AAA to AA+ on August 5, 2011. Markets were […]
Samantha LaDuc: Spotting Macro Trends Early and Leveraging Option Market Structure to Identify Potential Opportunities
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SpotGamma on Excess Returns
Summary Brent Kochuba, founder of SpotGamma, discusses the impact of the rise of 0DTE options, fixed strike volatility and the implications of options expirations. Highlights Below is the transcript from this conversation: welcome to excess returns where we focus on what works over the long term in the markets join us as we talk about […]
Are You Trading In a Fixed Strike Volatility World?
Are You Trading In a Fixed Strike Volatility World? Monday January 01 1999 Try SpotGamma HIRO Indicator for Free Real-time options data See when options drive stocks 0DTE filter for short-term trades Get Started Free Subscribe to the industry’s #1 platform delivering daily expert analysis to unveil: Proprietary market levels Bullish or bearish stocks Hidden […]
AI Options Mania
AI Options Mania Monday January 01 1999 Try SpotGamma HIRO Indicator for Free Real-time options data See when options drive stocks 0DTE filter for short-term trades Get Started Free Subscribe to the industry’s #1 platform delivering daily expert analysis to unveil: Proprietary market levels Bullish or bearish stocks Hidden trading risks Get Started Free Options […]
Options Flows Blocking a Market Breakout
Options flows blocking a market breakout Monday January 01 1999 Try SpotGamma HIRO Indicator for Free Real-time options data See when options drive stocks 0DTE filter for short-term trades Get Started Free Subscribe to the industry’s #1 platform delivering daily expert analysis to unveil: Proprietary market levels Bullish or bearish stocks Hidden trading risks Get […]
Volmageddon? No; JPM, BofA Say 0-DTE Options Are Suppressing Intraday Vol
by Tyler Durden of ZeroHedge Tuesday, May 16, 2023 – 03:05 PM In February, JPMorgan’s Marko Kolanovic dropped his now infamous warning that 0-DTE options trading will lead to Volmageddon 2.0 : “these options are net sold by directional investors, and supply of gamma is likely causing a suppression of realized intraday volatility… if there […]
1 year lows for Realized Volatility and VIX: Is that bullish?
The VIX and one-month realized volatility have hit one-year lows, indicating bullish implications in the short term for markets. Lower realized volatility suggests lower future volatility, which can create positive returns. The spread between the VIX and one-month realized volatility shows positive returns for periods when realized volatility is 16 or less. However, there are […]
Western Alliance’s CFO Claims Puts Dropped Their Stock – That’s Doubtful
The link between options flow and the underlying shares is based on the concept that options dealers and market makers buy and sell shares of underlying stock to hedge option positions. These hedging requirements are generally measured through Delta (the number of shares required to hedge an option from the directional move of the underlying) […]