Aretemis posted this graphic depicting the size of the options hedging market relative to other large flows. As options volumes increase its likely that volatility increases due to the mechanics of dealer hedging. Flows have killed fundamentals US Stock Market is now the derivative of the US Options Market …. a Frankenstein monster patched together […]
options market
Starting Short Gamma – September Market Outlook
There are several catalysts in September that could cause the same volatility we saw in August. So far this morning there is appears that China Trade has made no headway and futures are around 2900. As you can see in the chart below that has the SPX & SPY markets starting short gamma and therefore […]