2024-01-30 12:41:47 ET
Summary
- Volatility dispersion trade is expected to break down soon, similar to what happened over the summer months.
- Options hedging flows are weak, creating potential for a sharp decline in markets.
- If a decline does occur, it could result in a brutal sell-off into February options expiration and possibly into March.
The volatility dispersion trade is hard at work, and it's coming to a point in the cycle where we should see it begin to break down, as was the case over the summer months following the completion of earnings season....
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For further details see:
The Time To Unwind The Market Rally Has Come