Have Option Gamma Trades Taken Control of the Market?

E

easymon1

Have Option Gamma Trades Taken Control of the Market?
https://stocknews.com/have-option-gamma-trades-taken-control-of-the-market-2019-07/

Unprecedented VIX Move
https://www.zerohedge.com/markets/s...s-reason-behind-todays-unprecedented-vix-move

How The Gamma Effect Is Distorting The Stock Market
https://www.investopedia.com/how-the-gamma-effect-is-distorting-the-stock-market-4693510
serveimage
 
Yes. I have quant systems that monitor the cash market and futures in real-time.

The rates market, institutional vol dealer hedging, and then prop/large spec/retail is what is driving price.

They are using 'smart' execution algorithms to work the hedges, and they are good at hiding it.
 
Last edited:
in my estimation yes and furthermore they often were in the past without us fully realising. the size and frequency of the necessary interactions with the spot market for the sake of an imaginary payoff are of a different order of magnitude to anything else.
 
clearly one could offset these spot risks with other options but sadly i think is not where we are heading. we often are much better at learning how to exploit and manipulate without understanding the global consequences of our actions.
 
Absolutely. Not a doubt in my mind based on what i've seen. These huge positions into expiration has had a huge impact on the market. Premiums are skyrocketing though unfortunately. Great time to be making money if you know where to look. Won't be for long. I'm worried this may reshape the option market as firms keep getting blown out.


That author of the first article must've gotten drunk and fell asleep on his keyboard. He was just getting into the meat and potatoes and ended the article mid-thought?
 
Last edited:
You must log in or register to reply here.
Back
Top