FAST FIVE: Watch Live: All You Need To Know About Friday's "Deep" Option Expiration
Watch Live: All You Need To Know About Friday's “Deep” Option Expiration Join SpotGamma's Brent & Imran live at 1pmET as they discuss January OPEX.
Most of these calls were purchased in 2021 and have participated in the massive stock rally over the last year (S&P500 +24% since 1/1/21).
By purchasing large, long-dated call positions, investors gain levered exposure to higher stock prices, while limiting downside risk.
Previous Similar Instances: Comparatively, this January OPEX is of similar size to January 2021. We see the size of the respective January expirations as a function of strong stock performance, and the growth of options trading.
Its therefore very tough to isolate any option's specific impact, but it's certainly possible the large expiration added to the volatility.