Looking To Know The Direction Of The S&P 500? Brent Kochuba From Spotgamma Shows You How The Pros Trade Volatilityow Spotgamma
Money Tree Investing
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Is There a Cycle to Volatility?
In theory, what's really happening here is, you can think of it as volatility. Cause if the stock jumps up, then dealers and market makers are buying tons of shares of stock. And then if the stock starts to turn or those call options start to decay, because there's implied volatility, there's a extra dimension to measure here. So that's why these opsiens expirations are very important. Because when opsions expire, suddenly that dealer risk goes away - they're left with a bunch of hedges that they need to close.
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