Options volumes point to a retail fueled bubble
—will the gamma trade reverse?
—what drove markets higher will eventually unwind
—delta needs hedging!
A Change in perspective —
—All good news is priced in
—1.9 trillion and we sell off
—jpm beats estimates, banks tank
—where’s the positive news cycle coming from?
Inflationary or Deflationary?
—Japan and the monetary Petri dish
—gold tanks
—Bitcoin
—taxation deflationary
—stimulus is inflationary
The shift to selling premium
—equity skews are inverted
—index skew is massive
—risk more reasonable in higher volatility climates
SPX Expected Move
--last week-- 77.03 (expected move)
--next week-- 82.50