Why the missing 0DTE condor flow left SPX in negative gamma below its risk pivot, and which levels mark the difference between a bounce and a retest.
SPX
Relatively Few Traders Are Positioned For The Right Tail
SPX right tail risk may be under-owned: the whole vol surface lifted, flows leaned to call spreads, and put flies cap the cost of hedging 7,600.
FOMC Preview: A Fed Pause Meets a Fragile Options Market
The Fed is widely expected to stand pat this Wednesday, but the options market is pricing anything but a quiet week.
Traders Are Bidding The Put Wing Without Paying For Vol: Brent Kochuba On tastylive
How VIX expiration dealer positioning likely capped the VIX near 20, and what three-month SPX put skew suggests about hedging demand into earnings.
Why Option Premiums Look Too Thin To Sell
Why selling options premium offers thin compensation with short-dated implied volatility near its lows, and the SPX gamma levels that would change that.
CPI Meets Positive Gamma: The SPX Levels That Could Determine the Next Move
Wednesday’s inflation report could determine whether stocks extend their rally or face renewed selling pressure as rising Treasury yields threaten to disrupt a relatively calm options market.
The OPEX Effect: Put Selling Is Still Doing The Work
Single stock put selling has left dealers long gamma while realized vol sits near lows. See the positioning levels that would change the read.
Friday Jobs Report Preview: What the Market Wants to See
The stock market faces its biggest economic test of the week Friday morning when the September jobs report is released at 8:30 a.m. ET.
NDX Call Skew Has Room While S&P Vol Contracts: Kochuba on tastylive
Brent Kochuba of SpotGamma joined tastylive September 22 on vol expansion, NDX call skew and the dispersion rebuilding across tech.
The S&P500’s Diversification Problem
SpotGamma believes traders should add long exposure via NDX/QQQ calls due to a potential rally in equities through mid terms which would couple with a potential increase in volatility. Both higher equity prices and higher volatility benefit call positions.
We prefer the tech-heavy NDX vs SPX due to a “diversification drag” the S&P500 may experience.