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But why would everyone and their uncle be short today? What would drive that type of sentiment and mass behavior?

Personally, I liked today's action. It started out as if the daily chart was going to be a blood red waterfall, but then a flip and a big reversal. Well Played, Market Makers! Next week is going to be PPI and CPI reports and the news outlets are going to concoct whatever explanation for...

I have a much simpler explanation....It's Friday and it needs it. Next week is Friday the 13th. Then the following week is the anniversary of Black Monday. Then earnings season. And Last but not ...Halloween. I just manage risk and trade the market in front of me.

I am not in the mix of the 0 DTE Index Options. I play the longer timeframes in ETFs and stocks. But under GEX theory, traders would have cashed in their long puts on Tuesday to the dealers and then dealers would be net long puts so then they buy stocks/cover shorts to get back to Delta Neutral...

I just scan the market and either manage the risk in open positions or put on new spread trades. All depending on my liquidity, and the market conditions.

Help a brotha out.

I see Powell cutting faster and faster and faster in full panic mode next year and then the real fun begins. Thats when I go long treasuries.

Sounds like you are just wanting the vega. That's one of the standard Greeks.

This is of interest to me. I am doing a lot of work to efficiently compute option prices with a different model.

This should have the effect of creating some divergence between XLE and /CL. Hopefully this news sets up for a nice pair trade.

yup.

Today was nice. Much better than last Friday, which was a max pain Friday.

I agree. After 2pm would be the time to start covering. The strategy is essentially SVOL and could be replicated by selling VIX calls on Tuesdays and selling SVXY puts on Fridays. Or you could setup an algo to sell a /VX contract every 30 minutes and cover sometime in the late afternoon. If...

I have a hypotheses that high volatility in the mornings ends up suppressing after 2pm-3pm. I think it's just animal spirits and that won't change. Except on FOMC days when it is the opposite. I think a mechanical strategy would work on most days but then you would need to account for exceptions.

I hope it comes back soon. It was a holiday week, and people probably got lazy and didn't manage their SPX contracts on yesterday's expiration and just let them expire worthless. Thats my theory, at least.

It should be energy and small caps that win this war. Too much risk with China and their inevitable attack on Taiwan for the Magnificent 7 stocks.

Sure it is. Volmageddon happens any day now.

There will just be more financial transactions done in currencies other than the dollar. But no panics. No exits.

I trade both TZA and IWM options, depending upon how I like the structure and setups. When you realize how costly company stock shares are, then you don't mind having Direxion trade Russell contracts on your behalf.

They don't need to hold hands and sing Chumbaya around a campfire, but when their main trading partner becomes China, they will just take a position of neutrality when they invade Taiwan. We are going to need to get Japanese men on some Testosterone therapy to find their inner Samurai again and...