The OPEX Effect Low Volatility Is Lying to You | What the Options Market Says About What Comes Next
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Aug 9, 2025 Dive into the fascinating world of market dynamics as the hosts explore the intriguing 'Honey Badger' and 'Zombie' markets. They unpack record-high options trading volumes and discuss the potential for a volatility spike against the backdrop of low realized volatility. With tech call options at their cheapest in a year, they decode the implications for investors. Tune in for insights on the impacts of shifting tariff policies and the role of market maker hedging in creating unexpected price movements!
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OpenDoor Meme Move Driven By Options Flow
- Brent describes how meme stock option buying forces market‑maker hedges that buy the underlying stock.
- OpenDoor's huge options flow produced a rapid spike that mostly faded within days, showing how flow‑driven squeezes can be fleeting.
VIX‑Expiry After OPEX Often Flips Performance
- Brent Kochuba notes that when VIX expiration follows equity OPEX, market performance flips about two‑thirds of the time.
- That sequencing raises the odds of a post‑OPEX softening when the S&P rallies into expiration.
This OPEX Looks Uninterestingly Average
- Brent Kochuba finds the current OPEX positioning heavier toward calls but not extreme.
- That 'uninterestingly average' setup lowers the odds of a large forced reversal after expiration.