The S&P 500 has posted fresh record highs for the ninth straight week. Tech and semiconductor earnings fueled much of the recent surge, with SNOW climbing 52%, DELL gaining 57%, and MU surging 28% within one week. As we move into June, stretched positioning now meets a cluster of major catalysts. Three upcoming events will […]
call skew
Record Highs and Thinning Hedges
Last week, the S&P 500 closed its eighth straight weekly gain — the longest streak since 2023. As the rally continues to achieve record highs, underlying options positioning has evolved meaningfully since March. Most importantly, the market has quietly shed much of the protective hedging that was in place just two months ago. A dense […]
The Options Market Trapdoor
Over the past week, the topic of volatility has returned to the forefront. While the market has been largely range-bound, underlying support remains tenuous. Simultaneously, traders have begun more actively paying for downside protection. Given the backdrop of flaring geopolitical conflict, we see assymetric downside risk forming as trader uncertainty and negative gamma threaten to unlock the […]
