Published On Jun 18, 2024
In this month's episode of the OPEX Effect, we take a deep dive into the world of options flows and their impact on the markets. We discuss the recent GameStop saga and the role options played in the stock's wild ride. We also explore the concept of volatility suppression, the dispersion between mega-cap tech stocks like NVIDIA and the rest of the market, and the record-breaking streak of low volatility in the S&P 500. Finally, we analyze the extreme bloat in NVIDIA's options complex and what it means for investors.
00:00 Introduction
02:27 Impact of retail behavior on the market and lessons learned.
04:08 Introduction to the OPEX cycle and its impact on the market.
05:28 Examples of recent OPEX cycles and market behavior.
07:45 Explanation of market zones and their relevance.
10:08 JP Morgan collar trade and its impact on the market.
12:02 Discussion on the impact of JP Morgan collar trade.
14:16 Predictability of market volatility.
16:26 Stats and trends around options expiration (OPEX).
20:49 Cross asset volatility and its implications.
24:15 Dispersion in the market and its impacts.
28:43 NVIDIA's recent market performance.
31:38 GameStop and retail investor behavior.
42:28 Correlation and dispersion in the market.
48:03 Small caps performance and macroeconomic factors.
51:30 Inflation prints and their impact on the market.
58:40 Recent trends in market volatility.
59:00 Analysis of NVIDIA's market performance
DOWNLOAD THE SLIDE DECK
https://excessreturnspod.com/opexeffe...
MORE INFORMATION ABOUT SPOTGAMMA
https://www.spotgamma.com
FOLLOW BRENT ON TWITTER
/ spotgamma
FOLLOW JACK ON TWITTER
/ practicalquant