ACTV - The Stock Market Is In One Giant Trade That Is Near Its End
2024-07-07 06:15:00 ET
Summary
- S&P 500 rally driven by concentrated index names and volatility dispersion trade.
- Surge in stock prices, call volumes, and implied volatility seen in Amazon, Microsoft, Alphabet, Tesla, and Meta.
- Volatility dispersion trades around earnings season, with implied volatility rising before earnings and dropping after, repeating quarterly.
If the "rally" in the S&P 500 seems confusing, it shouldn't be. The rally is nothing more than a handful of names continuing to push the overall concentrated index higher. At this point, most of the gains are driven by the volatility dispersion trade, as traders play Ring Around the Rosie with the Magnificent 7 names....
The Stock Market Is In One Giant Trade That Is Near Its End