

Global Macro: The Hidden Force Behind Market Movements ft. Cem Karsan
6 snips Jan 16, 2025
Dive into the intriguing dynamics of the futures market and understand how options trading influences stock movements. Explore the concepts of VANA and Charm in options positioning, along with crucial market mechanics and risk management strategies. The conversation also dissects the impact of rising US Treasury yields on risk assets, along with predictions for the S&P 500. Lastly, the intricacies of the housing market are examined, revealing concerns over demand-supply balance and the potential for price corrections.
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Flows and Market Direction
- Positive flows into year's end don't guarantee market rise.
- Other factors like over-positioning and structural flows matter.
OPEX and Volatility
- OPEX Mondays exacerbate volatility due to high open interest.
- Crashes often occur around OPEX, making it crucial for trading.
VANA, Charm, and Market Flows
- VANA and Charm flows, derived from options skew, significantly influence market direction.
- These flows, often overlooked, represent substantial daily volume.