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 […]
volatility
Will The Fed Push Stocks Over The Edge Next Week?
The following is a guest post courtesy of Michael Kramer of Mott Capital Management. Hard Landing Worries Are Driving Volatility Volatility in the market has been high as traders and investors look to hedge risks associated with the Fed and the potential for an economic slowdown. The concerns seemed to evolve, starting with inflation and growth worries. Now […]
April 2022 Expiration Update
Yesterday we spoke with options expert Imran Lakha about the hedging flows tied to April OPEX. Currently, SpotGamma sees roughly 40% of total SPX/SPY/QQQ Gamma expiring by Thursday’s close. We also see roughly 50% of single stocks having their largest gamma position expiring on Thursday, too. For a list of S&P500 constituents most effected by […]
Credit Market Volatility vs. Equity Volatility
The following is an automated transcript of the video above, for your convenience. Please pardon any typos. Volatility Divergence Between Bonds and Equities Today we wanted to talk about volatility, and specifically the volatility divergence between bonds and equities. So on your screen we have the MOVE index, which is considered to be the bond […]
If These Bond ETF Levels Break, You Better Buckle Up
The following is a guest post courtesy of Michael Kramer of Mott Capital Management. There is instability in the bond market right now. In the face of a potential break, there may be a wave of volatility as market participants begin to price in changes to Fed monetary policy. Cracks are already showing as bond […]
Trade Analysis: ES Futures (22 October 2021)
The following is a guest post from Doug Pless. As I have discussed in previous articles, I begin my morning preparation by reading the SpotGamma AM Founder’s Note when I plan to trade futures. For ES futures, I note gamma levels, the SpotGamma Imp. 1 Day Move, the SpotGamma Gamma Index, and Gamma Notional for […]
Trade Analysis: ES Futures (12 October 2021)
The following is a guest post from Doug Pless. As I have discussed in previous articles, I begin my morning preparation by reading the SpotGamma AM Founder’s Note when I plan to trade futures. For ES futures, I note gamma levels, the SpotGamma Imp. 1 Day Move, the SpotGamma Gamma Index, and Gamma Notional for […]
Earnings Uncertainty Could Cause a Market Meltdown
The following is a guest post courtesy of Michael Kramer of Mott Capital Management. As uncertainty ticks higher in markets, volatility tends to follow. There is a tremendous amount of doubt building in the equity markets, especially regarding corporate earnings. With the market on the cusp of earnings season, volatility may see a massive spike. […]
A Volatility Crush Is Masking An Unhealthy Stock Market
The following is a guest post courtesy of Michael Kramer of Mott Capital Management. The S&P 500 finished the week ending September 24 up a mere 50 basis points, a tranquil week – on the surface. Volatility was fierce to start the week, a dynamic predicted by SpotGamma and shared with their subscribers last week. […]
S&P500 Is Less Volatile Into Expiration
In our daily subscriber reports we often talk about the “Options Expiration [OPEX] Cycle” and its influence on the S&P500. This cycle starts on the third Friday of each month, wherein its typical to have >20% of total S&P500 options* expiring. Our view is that options market maker hedging begins to concentrate around the strikes […]