Record Options Trading Shows Jitters Before $2 Trillion ‘OpEx’
- The 4,000 level for S&P 500 is a battlefield for bulls, bears
- Cboe put-call ratio for single stocks reaches a 25-year high
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Nowhere better illustrates Wall Street’s febrile sentiment than the stock-derivatives market, where trading volumes are breaking records heading into Friday’s $2.1 trillion options expiration.
The monthly event, known as OpEx, has a reputation for stoking volatility as traders and dealers rebalance their big exposures en masse. Now, with demand for both bullish and bearish index contracts booming while hedging in single stocks explodes in popularity, OpEx comes at a precarious time.