Tag Archives: Options

(Bloomberg) — A surge in short-dated options trading, driven by risk-taking behavior from investors, is amplifying daily moves in the stock market, according to Peter Tchir at Academy Securities. Most Read from Bloomberg “People are really literally gambling,” Academy’s head of macro strategy told Bloomberg TV and Radio Thursday, adding …

(Bloomberg) — The explosive rise of short-dated options is creating event risk on the scale of the stock market’s early-2018 volatility implosion, according to JPMorgan Chase & Co.’s Marko Kolanovic. Most Read from Bloomberg That episode, known as Volmageddon, sparked market chaos exactly five years ago and forced the shuttering …

Specifically, it tells us if an options contract has low or high liquidity, making it easier or difficult to enter or exit positions. In turn, open interest tells us which options contracts are preferable to pick in a hectic market. Understanding both helps any trader win market battles. However, there …