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Analyzing the market and the market dynamics has been difficult today and to wrap my head around it. The recent employment report was stronger than anticipated. That leads to concerns that the Federal Reserve may become more interventionist soon. So let's start off. Many stocks have performed poorly,

Following warnings from Jamie Dimon, markets immediately returned despite an early rally. Subscribe to read | Financial TimesNews, analysis and comment from the Financial Times, the worldʼs leading global business publicationFinancial TimesJoshua Franklin This emphasized the market's riskiness and the negative gamma that has been afflicting it. This market

Bearish traders have suffered recently as sharp equity gains have erased their gains! Similarly, bullish traders/funds are still struggling as they have incurred losses year-to-date. The neutralization of rebalancing flows has almost been completed. When the inflows and outflows of a certain asset are equal, the rebalancing flows are

Despite weak economic data, the week of options expiration has been marked by solid gains, with rebalancing flows propelling markets higher. However, intraday volatility should still be anticipated since Gamma is negative. Negative Gamma, in this case, refers to the decrease in the value of an option as the underlying

Fresh reminder, the liquidity is weak because of the upcoming holiday weekend when US equities markets will be closed on Monday. Thus, prices may display extreme volatility. Low liquidity suggests few buyers and sellers in the market, which may contribute to more volatility since prices might fluctuate more drastically. That

SPX500 Call options were added at the 4100 and 4200 strikes. This has the effect of flattening out the gamma curve above 4200, which suggests that the market may lose steam if it rallies into 4200. The gamma curve represents the rate of change of an option's delta.