Join Brent Kochuba and Jack Forehand as they analyze the current market landscape and what options flows tell us about potential volatility ahead. The duo dives deep into why the market may be underpricing volatility risk despite a recent 5% drawdown, significant upcoming events, and shifting rate dynamics. Key topics covered: Why the current options market positioning suggests heightened volatility risk Analysis of January options expiration and its potential market impact Deep dive into Tesla vs NVIDIA options positioning and what it means for both stocks The evolution of zero DTE options trading and its real market impact How dealer gamma positioning could amplify market moves Breaking down the correlation between different asset classes in the current environment Whether you're an options trader, long-term investor, or market enthusiast, this episode provides valuable insights into the mechanics driving today's markets and what might lie ahead. Don't miss this detailed discussion of market structure, options flows, and potential catalysts that could drive significant moves in early 2025.

Join Brent Kochuba and Jack Forehand as they break down December's historic options expiration - the largest OpEx on record. In this deep-dive episode, they explore: Why this December OpEx is uniquely significant with over $1.9 trillion in options value expiring Tesla's remarkable 75% surge since November and what the options market signals about its sustainability The fascinating case of MicroStrategy, Bitcoin enthusiasm, and concerning signs of market euphoria How major market positioning could impact year-end trading Why extremely low volatility and deteriorating market breadth may be warning signs The stark divide between mega-cap tech performance and the broader market 00:00 - Welcome to The OpEx Effect - Biggest Options Expiration Ever 00:35 - Why This OpEx Is Different: Record Volumes & Significance 02:06 - Understanding Options Market Growth & Impact 05:07 - Breaking Down the $1.9 Trillion in Options Value 08:42 - Call vs Put Dominance (10:1 Ratio) 15:07 - Record Low Volatility & Market Implications 19:15 - Tesla's 75% Surge Since November 23:30 - MicroStrategy, Bitcoin & Market Sentiment 28:45 - Market Breadth Issues & Mega-Cap Divergence 35:14 - The "Balloon Pop" Theory of Volatility 42:17 - JP Morgan Collar & Market Pinning Effects 47:16 - Cost of Portfolio Hedging at Historic Lows 50:47 - Warning Signs: Margin Debt & Retail Speculation 54:27 - The Problem with MicroStrategy's Premium 58:31 - Market Divergence: "Crocodile Jaws" 1:01:47 - Final Thoughts & Looking Ahead to January 1:04:49 - Closing Remarks & Disclaimer DOWNLOAD THE SLIDE DECK https://spotgamma.com/opex MORE INFORMATION ABOUT SPOTGAMMA ⁠https://www.spotgamma.com⁠ ⁠⁠⁠⁠⁠FOLLOW BRENT ON TWITTER ⁠⁠⁠https://twitter.com/spotgamma⁠ ⁠⁠⁠⁠FOLLOW JACK ON TWITTER ⁠⁠https://twitter.com/practicalquant⁠

In this episode of The OpEx Effect, we dive deep into the fascinating market dynamics following the recent election and explore the remarkable surge in options trading volume. We break down how Tesla's impressive rally is being driven by options flows and explain the mechanics behind gamma squeezes. We explore several key themes, including: How the post-election volatility crush led to a significant market rally Why Tesla has become the premier "Trump trade" and what the options flows tell us about its momentum The current state of meme stocks and the return of familiar faces like Cathie Wood Why the upcoming NVIDIA earnings could be a major catalyst for the broader market What dealer positioning and options skew tell us about potential year-end moves Throughout our discussion, we emphasize our core thesis that "flows over fundamentals" is increasingly driving market action, especially as options trading volume continues to hit new records. We also touch on our outlook for the crucial December OpEx period and share our thoughts on why the current rally may have more room to run despite stretched valuations in certain names. Join us for an in-depth conversation that combines technical analysis, market structure insights, and practical implications for long-term investors.

DOWNLOAD THE SLIDE DECK https://spotgamma.com/opex MORE INFORMATION ABOUT SPOTGAMMA ⁠https://www.spotgamma.com⁠