2min chapter

Forward Guidance cover image

The Shiny New Derivative That’s Taken Over Wall Street | Kris Sidial on Zero Day To Expiration (0DTE) Options & Tail Risk During A Volatility Bear Market

Forward Guidance

CHAPTER

The Risk of Reflexive Price Action

People who own puts hedged it by buying stocks. As the S&P 500 went up, they had to buy more. So it's reflexive. And I think that this could lead to a more reflexive one day move on the S-P or could cycle into a two day move in the S/P. We will eventually see a day where that sort of thing comes up on the roulette wheel when you have that type of sheer amount of notional exposure"

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