Options 02 (Oct 09 - Dec 24)

[winston]

Three Trading Mistakes Rookies Make (and Why Wall Street Loves It When This Happens)

by TOM GENTILE

Source: Power Profit Trades

https://moneymorning.com/investing/the- ... ll-street/

[behappyalways]

by Jason Goepfert

The most leveraged, most speculative players in the market are sitting on massive losses.

Best guess is the smallest options traders have taken $600 million+ in losses since Thanksgiving.

https://mobile.twitter.com/jasongoepfer ... 2915645440

[behappyalways]

S&P options with less than 24 hours to maturity now represent 44% of the index’s trading volume, and have been averaging $470BN notional per day over the past month."

What's Behind The Explosion In 0DTE Option Trading
https://www.zerohedge.com/markets/whats ... on-trading

[winston]

Warning: Don’t Make This Mistake On Your Next Trade

by Jeff Clark

Source: Jeff Clark Trader

https://dailytradealert.com/2023/01/12/ ... ext-trade/

[behappyalways]

Turmoil Lurks Around The Corner

0DTE stands for zero days to options expiration. These are put-and-call options on individual stocks and indexes that expire within 24 hours.

Source: Real Investment Advice

https://realinvestmentadvice.com/turmoi ... the-corner

[behappyalways]

Why 0DTE Is So Important, And Why The VIX Is Now Meaningless
https://www.zerohedge.com/markets/why-0 ... eaningless

[winston]

JPMorgan’s Kolanovic Warns of ‘Volmageddon 2.0’ Risk in Options

by Lu Wang

Daily notional volumes in such short-term options — known as 0DTE in industry parlance — is around $1 trillion.

The risk involves options dealers, who take the other side of trades and must buy and sell stocks to keep a market-neutral stance.

Since 0DTE options rarely get in the money, their market impact is now mostly felt through volatility suppression and an intraday buy-the-dip pattern, that results from hedging.

However, should the market stage a big move that put these contracts in the money, that would force options dealers to unwind a large amount of their positions. On a big down day such intraday selling would reach $30 billion.

During the second half of 2022, such options made up more than 40% of the S&P 500’s total trading volume.

Source: Bloomberg

https://finance.yahoo.com/news/jpmorgan ... 08851.html

[behappyalways]

SpotGamma Responds To 0DTE Fearmongering
https://www.zerohedge.com/markets/spotg ... rmongering



https://mobile.twitter.com/biancoresear ... 6196646912

[behappyalways]

A Day In The Life Of A 0DTE Option
https://www.zerohedge.com/markets/day-life-0dte-option

[behappyalways]

A fresh study from researchers at the University of Muenster in Germany shows the retail crowd may have lost $358,000 a day since May 2022, when it became possible to trade expiring contracts every day.

Source: Bloomberg

https://twitter.com/Mayhem4Markets/stat ... 7455983617