Rate hike odds near 60% and a red day across bonds and equities. On Gamma Guy, Brent Kochuba breaks down why muted put demand, cheap implied volatility, and positive dealer gamma could keep a large selloff from materializing.
put buying
December 2019 Market Decline Review
Here is a chart outlining how we saw the selloff during the first week of December 2019. There was record high gamma going into the first week of December which indicates that call:put ratios were at extremes. After a few negative tweets about trade and a poor ISM number selling started, and put buyers stepped […]