The following is a guest post courtesy of Michael Kramer of Mott Capital Management. The equity markets have had sharp drawdowns and extremely high volatility in 2022. While this dynamic has created a difficult backdrop for traders, the options market is playing a big role during these tricky times and SpotGamma indicators may provide an […]
put wall
‘Call AAA’: Santa Claus Is Having Sleigh Troubles
Through an options market lens, the following text will add color to some recent market movements.
The Theory Behind Put Walls
2900 in the S&P500 is identified as a strike with large put interest in SPX options. The theory behind put walls is as follows: We make an assumption that most of those puts were bought by hedgers, therefore market makers and dealers are short those 2900 puts. As a result they must short sell stock […]