Rising correlation, firmer fixed-strike vol and steeper 3-month put skew suggest the rotation trade is weakening. See where hedges still look cheap.
correlation
Traders Are Bidding The Put Wing Without Paying For Vol: Brent Kochuba On tastylive
How VIX expiration dealer positioning likely capped the VIX near 20, and what three-month SPX put skew suggests about hedging demand into earnings.
Tech Dip, Not Broad Equity Selling: Brent Kochuba On tastylive
Why the tech selloff rotation left equal-weight indices steady, what VIX term structure and correlation show, and how short-dated call flies play a bounce.
The S&P500’s Diversification Problem
SpotGamma believes traders should add long exposure via NDX/QQQ calls due to a potential rally in equities through mid terms which would couple with a potential increase in volatility. Both higher equity prices and higher volatility benefit call positions.
We prefer the tech-heavy NDX vs SPX due to a “diversification drag” the S&P500 may experience.
AI Stocks Options Positioning: Call Selling, Not Put Buying
Brent Kochuba of SpotGamma joined CNBC on September 16 to read AI stocks options positioning, bond ETF put skew and rising correlation.
September OPEX Options Positioning: Why 7,600 Is the Line | The OPEX Effect
Brent Kochuba of SpotGamma joined Excess Returns Thursday on September OPEX options positioning, the 7,600 gamma line, oil-rate risk and cheap tech vol.
Volatility, Correlation & Dispersion: SpotGamma on “The Market Huddle”
In this episode of Huddle +, Patrick Ceresna chats with Brent Kochuba, the founder of Spot Gamma, to break down the forces driving recent market volatility. They delve into the nuances of gamma and the dispersion trade, offering actionable insights for investors. Whether you’re a seasoned trader or just curious about the mechanics behind market […]
Why Does Record Low Stock Correlation and Volatility Matter?
Understanding Correlation and Volatility in the Stock Market Introduction This video sheds light on the concepts of stock volatility and correlation, particularly focusing on how correlation metrics influence market behavior and volatility trends. This post will summarize the key points discussed, emphasizing the impact of correlation on volatility and market dynamics. Correlation Metrics and Their […]
Stock & Bond Correlations: “No Crying in Correlation”
Alpha Exchange
Dispersion, Correlation, Volatility and the Stock Bubble
Dispersion readings are hitting highs per @SPGlobal, particularly in Mid Caps, while correlation is moving toward lows and volatility is flat. What does that mean? Why does it matter? High dispersion means individual components of an index are moving more than the whole, similar to the idea of market breadth. Traders have complained that the […]