Options trading is a major driver of equity markets, and we think this post-election market will be majorly impacted by current and new options positions.

As SpotGamma discussed on “The Market Huddle”  there are very large put positions in the S&P 500 (SPX) which may act as a major driver of market movement.

10-26-2020 Open Interest

As you can see above, as of last week’s close, there were substantial put contracts placed at strikes well below the market. This is a dynamic situation which may cause large shifts in hedging flows - so stay tuned as the market unfolds. We will be mapping this for our subscribers. 

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