"Stock Market Volatility Soars as $2.2 Trillion Options Deadline Approaches"

1 min read
Source: MarketWatch
"Stock Market Volatility Soars as $2.2 Trillion Options Deadline Approaches"
Photo: MarketWatch
TL;DR Summary

Traders are preparing for increased volatility in the stock market as $2.2 trillion worth of stock options are set to expire on Friday. This expiration could lead to higher-than-normal volatility, as option dealers are "short gamma," meaning they may need to buy or sell futures to hedge their positions. If the S&P 500 falls to 4,320, dealers could rush to avoid losses, potentially driving the market lower. The expiration of monthly options, along with weekly options, could further complicate the market's reaction.

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