Real Vision: Finance & Investing #954 - Is The Options Market Flashing Bear Signals? With Cem Karsan
Jan 18, 2024
Cem Karsan, founder of Kai Volatility Advisors, discusses the impact of the options market on broader market price action and market structure. Topics include market dynamics, seasonality, tech sector performance, global liquidity, investment decisions, and audience insights.
AI Snips
Chapters
Transcript
Episode notes
Market Dynamics
- Short-term market movements are primarily driven by structural flows, not narratives or news.
- These flows, especially during specific times of year, are predictable and measurable.
Timeframes and Strategies
- Focus on flows for short-term outcomes, fundamentals for long-term (10+ years).
- Even with long-term focus, manage short-term volatility due to drawdown risks.
Structural Flows and Seasonality
- Market rallies necessitate reinvestment, influencing short-term dynamics and creating momentum.
- Options expirations, especially in January, add to this effect, notably in tech stocks.