I've been whining about volatility risk embedded in this market. And, so far, tech sold off, but thats it.
The signs remain that things could get quite nasty.
SPX < 7,480 Risk Pivot
VIX at 1-month highs post OPEX
COR1M still ~5
GOOGL -5% TSLA -7%
US10Y +4.7% (+1 yr high)
Are space stocks set to liftoff or crash? Options remain expensive across the sector after the June selloff, yet several names such as RKLB are showing interesting setups. Read our full analysis: https://t.co/M97L4jhDvP
While everyone is trying to catch the bottom in memory chips, Brent Kochuba @spotgamma found a way to get paid no matter which direction $SKHY goes.
Put skew is screaming, and he is selling it with a January put ratio for a $4 credit. Delta neutral. If vol crushes, he wins. If the name keeps grinding lower, the structure flips to positive gamma over time.
@saltydocEM it seems more concentrated around vix expiration now. I did look at this. I have to go back and check my notes. I am currently wandering aimlessly through the desert.