OPEX on Friday was uneventful, the market still sticked to its pin at 4700. Total gamma decreased 158M to 520M, gamma inversion occurs at 4630. Remember: Below that level "anything goes" regarding vol. Note that there are no significant gamma markers between 4700 and 4630 that could support the market. Yes, the market seems boring, but as David Salomon said recently (see Zerohedge): "Something will rebalance", the question is only when. Also consider the ominous divergence between VIX and MOVE. Stock market vol is ultra-cheap currently compared its bond market equivalent. This anomaly that will mean revert eventually.
Note
Well that escalated quickly. 10 minutes in and target is already reached. Can we establish a new range between 4725 and 4750 now?
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.