New HiPOS Conservative Trade - As we referenced in last week’s update volatility has remained on the higher end of late. This enabled ZEGA’s traders to jump from Friday’s expiration to today’s entry without any days in between.
Derek and Jay discuss the fallout in the markets during Jerome Powell’s press conference post Fed decision. Then, they talk about high yield spreads and current interest rates across relative fixed income like investment grade, high yield, and treasuries. Finally, they explore how options are priced and which options are considered expensive or cheap vs one another.
HiPOS Weekly Update: Stress Testing the Strategy
Derek and Jay talk through the recent CBOE analysis on impact of 0DTE options. Contrary to popular belief, 0DTE options may not be causing imbalances according to the data.
Derek and Jay discuss whether higher real yields are an issue for markets and how this period seems similar to the 1990’s. Then they dive into implied volatility using companies like Tesla TSLA and Nvidia NVDA.....