Last week began with quiet anticipation of Wednesday’s FOMC. When the Fed announced the 25 basis point rate cut and Treasury bill purchases, the reaction was immediate. Equities surged, with the SPX breaking out above our 6,845 Volatility Trigger to approach all-time-highs near the 6,900 resistance level. The options market had priced in meaningful event-related volatility surrounding FOMC, and […]
OPEX
March OPEX Effect: Put Maxed
In this episode of the OPEX Effect we discuss how the stock market turned right at February VIX expiration resulting in a 10% SPX market crash into this weeks massive March OPEX. Brent flags how put values are “maxed out” into OPEX, and why that dynamic combines with 5,500 – 5,565 as a major support […]
The OPEX Effect: August 2024 | Behind the Scenes of the Recent Market Volatility
In this episode of OPEX Effect, we dive into the recent market volatility and its connection to options flows. We discuss the sudden VIX spike to 65, examining the factors that led to this extreme event, including low liquidity, the unwinding of correlation trades, and the impact of zero-day options. We explore how the market […]
How We Nailed the Volatile Markets Last Week—And How You Can Too
How We Nailed the Volatile Markets Last Week—And How You Can Too Monday January 01 1999 Try SpotGamma HIRO Indicator for Free Real-time options data See when options drive stocks 0DTE filter for short-term trades Get Started Free Our Critical Market Guidance The past week has been a roller coaster for the stock market, with […]
Blazing Hot IWM/Russell 2000 (R2k): How Options Insights Helped to Navigate the Small-Cap Madness
How Option Flows Helped to Navigate the Small-Cap Madness Monday January 01 1999 Try SpotGamma HIRO Indicator for Free Real-time options data See when options drive stocks 0DTE filter for short-term trades Get Started Free Key Takeaways The unprecedented +12% surge in IWM/Russell 2000 (R2k) marked the most overbought condition for any major US Index […]
The OPEX Effect: July 2024 | Inside What is Driving This Weird Market
In this episode of the OPEX Effect, we explore the current market rally and discuss the concept of “correlation spasms” – unusual movements and relationships between market components. We examine record low volatility, the outsize impact of mega-cap tech stocks, and the recent surge in small-caps. We analyze the prevalence of zero days-to-expiry options trading […]
OPEX Effect: June is Call-Bloated
In The OPEX Effect: June 2024, Brent Kochua and Jack Forehand discuss the impact of options expiration (OPEX) on market volatility and specific stocks, such as Nvidia. During periods of low market volatility, significant call positions expiring can lead to increased market movement and volatility. They mention the influence of JP Morgan’s collar positions on the […]
Unpacking May OPEX: How Will Low Volatility and NVDA Earnings Shape The S&P 500?
Key Points: A Brief Synopsis: Large call positions are driving low volatility into May options expiration. The expiration of call positions lines up with several key data points (Fed Speaking, CPI) which may cause volatility to briefly expand into the end of this week (Friday, 5/17), and into VIX expiration & NVDA earnings on 5/22. […]
The OPEX Effect: Feb Edition
SpotGamma Founder, Brent Kochuba, talks about the extreme call skews, and why that may lead to some stock price consolidation into the end of February.
The OPEX Effect: November 2023
Listen to “The OPEX Effect” podcast – targeted to those of you will investing time frames past a few weeks. Here we cover some interesting trends in equity volatility, and breaking its link to interest rates. Also some call buyers in both the Magnificent 7 & cryptos.