Fundamentals are dead Flows are the only thing that matters today Policymakers sought to stop a credit cycle with liquidity so people mistake liquidity for reality Financial gravity suspended, but not indefinitely, “flow guru” trading wins big in short term, but not long run — Christopher Cole (@vol_christopher) October 16, 2020 The 2020 markets have […]
record call options
Record Call Options at Record Prices
The following charts represent the most important dynamic in equity markets. It can be summarized by this: Massive call demand has pushed call prices way up, driving huge amounts of stock volume. Record levels of single stock call options were purchased into June expiration, reloaded back to record levels in July, and are now rebuilding […]
SPX Options Expiration vs Equities
We spend a lot of time talking to our members about the lack of structure in the SPX options market. What we mean is the positioning in SPX options is just very small as seen in this chart below which maps total SPX call & put gamma. This has implications for markets not just at […]
