Login with your ZeroHedge Premium account

Sign up here for the free newsletter

{{message}}

Subscribe with a new email
      In 0DTE we trust

      Nomura's McElligott on the "beast": "...over the past month, nearly 1 out of every 2 Options traded on SPX, SPY and QQQ are 0 days til expiration." For now things are behaving rather OK, but the increase of these options will become a problem for markets, as hedging the underlying will cause major issues for the market micro structure.

      In 0DTE we trust
      Source: Nomura
      Size buying

      Garrett continues: "if everyone is so bearish, who is buying?"

      (un)natural answer = systematic community who have purchased ~100bn of global equities in the last 10 days.

      Size buying
      Source: GS
      You are consensus

      Goldman's derivatives guru Garrett: "if you’re bearish, you’re consensus … doesn’t mean you are wrong, but you are in the majority". On AAII sentiment he writes: "...investors have *never* been this consistently bearish… for 11 straight weeks, >50% or respondents have been negative on the market"

      You are consensus
      Source: GS