Last week we warned of the potential implications of a post-OpEx gamma-unclench...
In case there isn't enough excitement, today we get a $2.7 trillion opex (including $555BN in single stocks) the largest July-options-expiration on record. Gamma about to tumble pic.twitter.com/uvjxGal8ha
— zerohedge (@zerohedge) July 19, 2024
As we simplified at the time, this drop in the very long gamma position that had 'squelched' market direction for weeks, means dealers get longer to the upside and shorter to the downside from here.
