Hedgeye Podcasts Hedgeye Investing Summit Spring 2025 | Tier1 Alpha CEO Craig Peterson, COO David Pegler, Sr. Exec. Advisor Mike Green
Apr 15, 2025
In this engaging discussion, Craig Peterson, CEO of Tier1 Alpha, and Mike Green, Sr. Exec. Advisor, delve into the intricacies of market structure and trading dynamics. They highlight the critical role of algorithms in trading and how volatility affects market strategies. The duo explores the transition of investor sentiment from complacency to panic and discusses portfolio management in uncertain conditions. They also emphasize the implications of automatic 401k contributions on markets, offering valuable insights for navigating today's complex investment landscape.
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Market Structure Focus
- Market structure analysis focuses on machine-driven trading, not discretionary decisions.
- Algorithms transact based on risk, trend, and volatility, impacting market dynamics.
Negative Gamma Impact
- Negative gamma increases market volatility and instability, accelerating both down and up moves.
- Dealers buy/sell futures in the same direction as momentum, amplifying trends non-discretionarily.
0DTE Options: A Structural Trend
- Zero-day-to-expiry (0DTE) options are a structural market trend, not cyclical.
- They offer volatility dampening but become ineffective in high-volatility environments.