On 12/20 the S&P500 experienced its sharpest selling in over 3 months, as the index rapidly declined 1.6% – seemingly out of nowhere. SpotGamma, in real time, flagged 0DTE trading as a likely culprit in a now-viral tweet: Its a 0DTE driven plunge in the S&P. you can see the spread here between bearish 0DTE […]
Bloomberg
19-Hour VIX Options Trade Surges as Stock Market Resumes Swoon
2021-11-30 17:28:36.362 GMT Bloomberg interviewed SpotGamma Founder Brent Kochuba about a large VIX trade on 11/29. By Lu Wang(Bloomberg) — A sizable bet that equity market volatilitywould worsen appears to have turned a tidy profit in less than aday.About $13 million was spent last night on 65,000 Decembercall contracts tied to the Cboe Volatility Index, […]
Wall Street Dealers in Hedging Frenzy Get Blamed for Volatility
From Bloomberg: Two professors have just lent academic heft to a suspicion running rampant on Wall Street all year: The options market is whipsawing share prices like never before. As retail investors spur a boom in derivatives trading to rival actual stock volumes, dealers rushing to hedge themselves are said to have fueled the 2020 melt-up in tech names […]