Why are US stocks sluggish? Blame a record $5 trillion options expiration

ajacobson

ajacobson

Why are US stocks sluggish? Blame a record $5 trillion options expiration
Saqib Iqbal Ahmed - Reuters
An upcoming U.S. stock options expiration that is set to be the largest on record is tamping down market swings, potentially counterbalancing any gyrations stirred by the Federal Reserve's monetary policy announcement on Wednesday.
Some $5 trillion in U.S. stock options are set to expire on Friday, according to Asym500 MRA Institutional, a unit of derivatives strategy and execution firm Macro Risk Advisors.
/jlne.ws/3Nk54h1
 
ajacobson said:
Why are US stocks sluggish? Blame a record $5 trillion options expiration
Saqib Iqbal Ahmed - Reuters
An upcoming U.S. stock options expiration that is set to be the largest on record is tamping down market swings, potentially counterbalancing any gyrations stirred by the Federal Reserve's monetary policy announcement on Wednesday.
Some $5 trillion in U.S. stock options are set to expire on Friday, according to Asym500 MRA Institutional, a unit of derivatives strategy and execution firm Macro Risk Advisors.
/jlne.ws/3Nk54h1
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sluggish?

SP500 has risen 13.5% in 1.5 months. You don't see that everyday.

The effect is seen in the options market where implied volatility has collapsed during that last 1.5 months. This is the result of long option losses. But actual market swings have been quite large.
 
Yes, but Goldman Sachs warns already, that CTAs will most probably sell the S&P500 in each scenario of the next week
 
I have begun to ignore all such economic news and instead just concentrate only on my own analysis (maintaining a watchlist and analysing the developments of those tickers in this watchlist, and just forget about anything else).
B/c I need Peace Of Mind for my mind... :D
 
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