A Tour Around the Options World with SpotGamma's Brent Kochuba
Excess Returns
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The Effect of Options Expiration on the Market
The idea of like game increasing or decreasing being tied to higher or lower returns in the market after options expiration still exists. Even though that relationship, you know, the fade relationship I was talking about before has changed, I think the zero DD flows is allowing a different hedging protocol around options expiration. The JP Morgan hedge fund put on this collar trade every quarter and it's got $15 billion in long only assets. And everybody now in the options universe, and even if you're not, watch this trade because everyone's doing it.
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