The OPEX Effect

In this episode, we dive deep into the world of options and their impact on market dynamics. We start with an "Options Dealer Flows 101" primer, explaining key concepts like delta hedging, gamma, charm, and vanna to help viewers understand how options flows can drive stock prices. We then analyze the current market situation heading into the September 2024 options expiration, one of the...

In this episode of OPEX Effect, we dive into the recent market volatility and its connection to options flows. We discuss the sudden VIX spike to 65, examining the factors that led to this extreme event, including low liquidity, the unwinding of correlation trades, and the impact of zero-day options. We explore how the market landscape has shifted, with a focus on the transition from inter-equity...

In this episode of the OPEX Effect, we explore the current market rally and discuss the concept of "correlation spasms" - unusual movements and relationships between market components. We examine record low volatility, the outsize impact of mega-cap tech stocks, and the recent surge in small-caps. We analyze the prevalence of zero days-to-expiry options trading and its effects on intrada...

In this month's episode of the OPEX Effect, we take a deep dive into the world of options flows and their impact on the markets. We discuss the recent GameStop saga and the role options played in the stock's wild ride. We also explore the concept of volatility suppression, the dispersion between mega-cap tech stocks like NVIDIA and the rest of the market, and the record-breaking streak of...

In this episode of the OpEx Effect, we discuss the current state of the market as we approach the May options expiration. We analyze the low levels of volatility and put demand, suggesting market participants are not too concerned about potential downside risks. We also examine the impact of key upcoming events, particularly the CPI report and NVIDIA earnings, and how they could influence market d...

In this episode of the OPEX Effect podcast, Brent Kochuba and Jack Forehand discuss the current market turmoil and its potential impact on options flows. They analyze how the geopolitical conflict in the Middle East, coupled with rate volatility and the upcoming U.S. elections, is causing a shift in the market environment from a period of volatility suppression to one of increased volatility. The...

The OPEX Effect looks at the impact of options flows on the market from the perspective of longer-term investors. In each episode, we break down what is going on behind the scenes in the options market and how the resulting flows are moving markets. In this episode, we take a deep dive into the March 2024 options expiration and its potential implications for the market. We discuss dealer positioni...

The OPEX Effect looks at the impact of options flows on the market from the perspective of longer-term investors. In each episode, we break down what is going on behind the scenes in the options market and how the resulting flows are moving markets. In this episode, we take a deep dive into the February 2024 options expiration and its potential implications for the market. We discuss the extreme l...

The OPEX Effect looks at the impact of options flows on the market from the perspective of longer-term investors. In each episode, we break down what is going on behind the scenes in the options market and how the resulting flows are moving markets. In this episode, we take a deep dive into the January 2024 options expiration and its potential implications for the market. We discuss why this expir...

THE OPEX Effect looks at the impact of options flows on the market from the perspective of longer-term investors. In each episode, we break down what is going on behind the scenes in the options market and how the resulting flows are moving markets. In this episode, we look at where things stand coming into the December 2023 options expiration. We look at dealer positioning in the S&P 500 head...

In our latest episode of the OPEX Effect, we discuss the upcoming November options expiration and what Brent is seeing in options markets leading into it. We also talk about the impact of 0DTE options on the market, the relationship between options expirations and VIX expirations, positioning in the Mag 7 stocks and a lot more. DOWNLOAD THE SLIDE DECK https://www.validea.com/documents/opexeffectno...

In our inaugural episode of the OPEX effect, Brent Kochuba, Jack Forehand and Justn Carbonneau look at the options market as we approach the October expiration and the big takeaways investors can take from it. We discuss the role options flows play in the market, look at current positioning in the S&P 500 market and also cover bonds, the MAG 7, the Ozempic trade and a lot more. DOWNLOAD THE SL...