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The Options Market Has a Message

Real Vision: Finance & Investing

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Is There a Risk in Taking a Big Move on a Given Day?

If some big blow comes in on a day and everyone wants to go in the same direction, that's going to turn what would be a 3% move into a 5, 6%. The whole gamma squeeze dynamic that was talked about when GameStop happened and AMC and all that. So does that mean that we should take a big move on a given day with a grain of salt that is not necessarily sustainable?Yeah, 100%. Yeah, I think those moves are probably opportunities to fade and claim mean reversion type trades because otherwise you'll get your face ripped off too early. We don't want that to happen.

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