Morgan Stanley Quants: "We Are On The Verge Of Triggering Billions In Forced Selling"

While the hawkish Fed has shaken the market, an even bigger bogeyman lurks in the shadows: according to Morgan Stanley's head of Quant and Derivatives Services, Chris Metli, the point of activating significant forced selling is getting much closer.

According to Metli, while option dealers were long $10bn in gamma just a few days ago that has now slipped to long $4bn in gamma.

morgan stanley quants we are on the verge of triggering billions in forced selling

Authored by Tyler Durden via ZeroHedge September 21st 2023