In this episode of the OPEX Effect, we take a look behind the scenes at options flows at what is going on in the options market as we head into the election. We cover: - The current options landscape leading into October expiration - How NVIDIA's performance continues to drive broader market trends - Analysis of volatility patterns and their implications for market movement - Detailed exploration of potential market reactions to the upcoming U.S. election - The mechanics behind post-election volatility crush and its effect on stock prices - Comparisons to previous election cycles and lessons learned - Discussion of the JP Morgan collar trade and its market influence - Insights on interpreting options flow data to anticipate market moves Whether you're an options trader, long-term investor, or simply interested in understanding market forces, this episode provides valuable perspectives on how options expiration and major events like elections can shape market behavior. Brent and Jack break down complex concepts into digestible insights, offering both technical analysis and practical takeaways for navigating the current market environment.

SPOTGAMMA'S NEW PRODUCT - TRACE THE MARKET https://spotgamma.com/trace-the-market-excess-returns/?aff=Excess DOWNLOAD THE SLIDE DECK https://spotgamma.com/opex MORE INFORMATION ABOUT SPOTGAMMA ⁠https://www.spotgamma.com⁠ ⁠⁠⁠⁠⁠FOLLOW BRENT ON TWITTER ⁠⁠⁠https://twitter.com/spotgamma⁠ ⁠⁠⁠⁠FOLLOW JACK ON TWITTER ⁠⁠https://twitter.com/practicalquant⁠

In this episode, we dive deep into the world of options and their impact on market dynamics. We start with an "Options Dealer Flows 101" primer, explaining key concepts like delta hedging, gamma, charm, and vanna to help viewers understand how options flows can drive stock prices. We then analyze the current market situation heading into the September 2024 options expiration, one of the biggest of the year. We explore the outsized influence of Nvidia options activity, discuss potential outcomes from the upcoming FOMC meeting, and examine how bond-equity correlations are shifting. We break down why understanding options flows is crucial even for long-term investors who don't trade options themselves. Using real-world examples, we illustrate how options positioning can create market volatility and reversals around key dates. Whether you're an options trader or just want to better understand what's moving markets, this episode provides valuable insights into the hidden forces shaping stock prices. Join us as we unpack the complex world of options and their far-reaching effects on the broader market. SPOTGAMMA'S NEW PRODUCT - TRACE THE MARKET https://spotgamma.com/trace-the-market-excess-returns/?aff=Excess DOWNLOAD THE SLIDE DECK https://spotgamma.com/opex MORE INFORMATION ABOUT SPOTGAMMA ⁠https://www.spotgamma.com⁠ ⁠⁠⁠⁠⁠FOLLOW BRENT ON TWITTER ⁠⁠⁠https://twitter.com/spotgamma⁠ ⁠⁠⁠⁠FOLLOW JACK ON TWITTER ⁠⁠https://twitter.com/practicalquant⁠

In this episode of OPEX Effect, we dive into the recent market volatility and its connection to options flows. We discuss the sudden VIX spike to 65, examining the factors that led to this extreme event, including low liquidity, the unwinding of correlation trades, and the impact of zero-day options. We explore how the market landscape has shifted, with a focus on the transition from inter-equity correlation to a broader bonds versus equities perspective. We also analyze the current options positioning and its implications for future market movements, particularly in light of upcoming economic data releases and events like Jackson Hole. Throughout the episode, we emphasize the importance of understanding options flows and market dynamics to make more informed investment decisions in these volatile times.

DOWNLOAD THE SLIDE DECK

⁠⁠⁠⁠⁠https://spotgamma.com/opex

MORE INFORMATION ABOUT SPOTGAMMA

⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.spotgamma.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠FOLLOW BRENT ON TWITTER

⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://twitter.com/spotgamma⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠FOLLOW JACK ON TWITTER

⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://twitter.com/practicalquant⁠⁠⁠