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dealer positioning

Aug 23 2019

FED, TRUMP, Gamma Trap: Crazy Trading Day 8/23/19

SPX volatility chart of estimated dealer futures versus price, marking 2923 spot, 2900 put floor and 3000 wall.

Fed gave a speech that was “volatility dampening” at 10AM. Trump didn’t like what the Fed had to say so he started tweet-trashing the Fed and China triggering a “gamma trap“. Stock markets were just at the volatility trigger level of 2920 (black horizontal line) so the gap down flipped the trigger and dealers were […]

Written by SpotGamma · Categorized: Market Analysis · Tagged: dealer positioning, gamma trap, long gamma, open interest, options, S&P500, short gamma, SPX, SPY

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