It’s that time of the month … options expiration week.
Market volatility has increased on cue as it has every month all year.
In today’s video, I explain why that happens.
And I share the reason: Big institutions and hedge funds are manipulating the market based on “the Greeks.” You can use that to your advantage and I’ll tell you how.
The “Greeks” and Market Makers
Options trading is on the rise. Since 2020 stock options trading volumes have been bigger than share trading volumes.
That’s why it’s important to understand how stock and options prices influence each other. This is something big trading institutions watch closely. Their response to changes in key variables — what I’ve been calling the Greeks — can lead to big short-term movements in stock prices.
Understanding that does two things. First, it’ll help you avoid panic during options week. Second, it’ll help you get ready for some opportunistic trading.
Watch now and you’ll find out:
- How options trading has grown in the last two years. One chart really emphasizes this in comparison with the S&P 500.
- How market makers and hedge funds manipulate stock prices to protect their options strategies — and how that can affect volatility.
- How to use options expiration week, or “gamma week,” to your advantage on future stock trades.
- And more.
Click here to watch this week’s video or click on the image below:
Kind regards,
Ted Bauman
Editor, The Bauman Letter
