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Tuesday, December 14, 2021

4.3 Trillion Reasons To Be Nervous Into Friday's Option Expiration

https://www.zerohedge.com/markets/43-trillion-reasons-be-nervous-fridays-option-expiration 

That's the clear message from Goldman Sachs and SpotGamma as traders ready themselves for a tumultuous week navigating the implicit volatility of tomorrow's Fed statement, dot-plot, and press conference as turbo-taper-talk is expected, ahead of a very significant options expiration on Friday.

$4.3tln notional of equity options (referencing over 8% of the Russell 3000's market cap) are expiring (including $2.3tln of SPX quarterly options, $360bln of options on SPX E-mini futures, $255bln of SPY options, and $670bln of single stock options).

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