Charlie McElligott, a strategist at Nomura, dives into the surge of zero-day options in trading. He discusses how these short-lived contracts are reshaping market dynamics, attracting both institutional and retail traders. The conversation highlights the intense debate surrounding their potential risks, including the fear of a repeat of the 2018 'Volmageddon.' McElligott explains the driving factors behind their popularity and the complex interplay between market participants, shedding light on how these trends could impact overall market stability.

MacroVoices Erik Townsend welcomes Nomura’s Charlie McElligott to the show to discuss the formative banking crisis, monetary policy including yesterday’s 25 bps hike into the banking crisis, how to trade the Fed boxing itself into a corner, 0DTE options, abysmal performance of Commodity Trend funds in 2023, and much more. https://bit.ly/3K4aFal Download Big Picture Trading chartbook 📈📉https://bit.ly/3z0u7ON ✅Sign up for a FREE 14-day trial at Big Picture Trading: https://bit.ly/2JjZR7J   Check out Nick's YouTube channel: https://www.youtube.com/c/Optionfinity Join OptionFinity discord: https://discord.gg/Rvnsv6Y   Please visit our website https://www.macrovoices.com to register your free account to gain access to supporting materials

Charlie McElligott, a cross-asset macro strategist at Nomura, dives into the recent tumult in the stock market, including the startling 5% drop in the S&P 500 and the 13% fall of the Nikkei. He discusses various factors driving this volatility, such as the Federal Reserve's missteps, a shaky labor market, and the unwinding of the yen carry trade. Additionally, McElligott sheds light on the implications of short volatility positions and Japan's economic dynamics amidst rapid market changes.