No need for a coffee – this one’s easy. In this post, you’ll get a solid understanding of inflation and stagflation. You’ll learn: How Fed can cause inflation. How the growth/inflation relationship can break. Current stagflation drivers. Fed’s failure to fix it . Last week the US GDP reading came at a negative 1.4%. Along […]
What does the options market say about the stock market? Despite the negative sentiment and risks, investors don’t seem to put their money where their mouth is. Due to little demand, hedges are screening cheap, and vol sellers are coming back. Here’s what I’m looking at 👇 Market isn’t expecting tail events into the next […]
So what’s going on with the dollar? Wasn’t it collapsing under the weight of inflation and recession, soon to be replaced by the RR (Renminbi-Ruble) currency system? Despite many arguments for a weaker USD, the dollar index $DXY actually gained 10% over the last year. How so? I asked this question on Twitter and want […]
“Keep calm and carry on.” – that’s the motto of this market right now. +0.81% on the SPX today, and the risk-on is in full swing this spring. Flashbacks of 2021 are all over the place – tech, growth and crypto are all higher in the last few weeks. Even though only half of S&P […]
Quite an eventful day today. First, it’s interesting to see a -0.4% down move in $SPX accompanied by a lower $VIX. Historically, it’s not often that $VIX loses 2 pts on a half-percent sell-off in $SPX. It still sits >30, implying daily 2% moves in $SPX. If $SPX realizes anything less than that, it should […]
Are you tired from constantly living in the dark, fully unaware of the current Gamma Exposure? Are you frustrated from having to guess the Zero Gamma level ALL THE TIME? Are you annoyed from not knowing what the f*ck all of this even means!?! I know, I was. Hello, my name is Sergei. And today, […]
TO ALL EQUITY PMs: YOU MAY NOT BE INTERESTED IN OPTIONS, BUT OPTIONS ARE INTERESTED IN YOU! $SPX options make up 16% of the $SPX market cap! Options gamma is one of the most significant structural flows within the equity markets. Let’s explore how it impacts your business. Options are often linked to insurance. And […]
It’s not always that you get a nice and smooth yield curve. Sometimes there are kinks. Embedded in those kinks is a wealth of information. For example, what does a kinky yield curve tell us about the interest rate expectations? Well, let’s have a look 👇 So last Friday, I decided to spend my evening […]
