Disappearing dealer gamma spurs wild stock swings
Stock market selloff leaves dealers perilously close to peak short gamma positioning
Options dealers have seen their long gamma positioning evaporate since the S&P 500 began it’s near 9% slide three weeks ago, setting the stage for more violent intraday swings in the benchmark index.
Stocks have tumbled on fears that US President Donald Trump’s to-ing and fro-ing on tariffs could trigger a global trade war and tip the US into a recession. The moves have been choppy, with violent intraday lurches in both directions – which some see as a sign that dealers are trading with the
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