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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?


To: robert b furman who wrote (14611)1/7/2021 10:04:25 PM
From: ajtj99  Read Replies (1) | Respond to of 97457
 
I know it used to be that way, but that hasn't been the case in the past year or so. If you look at some of the weekly open interest on active issues in months that aren't the end of a quarter (or January), the weekly options open interest is almost as high as the monthly. Hoodies are turning everything upside down and inside out!

January monthly op-ex has high open interest as funds like to lock in their calendar year numbers, but when we get past that the weekly numbers will likely be nearly as high as the monthly in active issues every month into August other than March and June.

The other thing that is messing with the old options calendar is how algos are scalping options intra-day. Look at this volume on the SPY just 1-day prior to expiration. It dwarfs the open interest!

barchart.com

The other thing messing things up is the Fed Firehose and all the fiscal stimulus.



To: robert b furman who wrote (14611)1/7/2021 10:23:07 PM
From: ajtj99  Read Replies (1) | Respond to of 97457
 
I should also add that while I have no evidence, I suspect there are hedge funds out there that are replicating the Softbank "gamma squeeze" strategy on some issues. It's a risky method to increase alpha, but it was one that was not in the mainstream until it was uncovered this summer. It didn't end up working so well for Softbank because they didn't get out of their positions soon enough, but they were up big in mid-August.