ACTV - A Post-OPEX Liquidity Drain Could Rattle The Stock Market This Week
2024-06-23 06:15:00 ET
Summary
- Gamma levels in the S&P 500 have significantly reduced after June options expiration, leading to potential market instability.
- Fed's reverse repo facility usage is expected to increase significantly by the end of June, potentially draining liquidity from risk assets.
- Changes in reserve balances and declining liquidity could contribute to increased volatility and potential pullback in equity pricing.
A window has opened between now and the end of June that could see the equity market start a sizeable pullback. The passing of the June options expiration means that hedging flows will no longer support the market as liquidity levels drop heading into quarter-end....
A Post-OPEX Liquidity Drain Could Rattle The Stock Market This Week