In this week’s edition of Option Flows, Tony Stewart is commenting on the recent market movements.
Given recent colossal flushes, it’s understandable to observe 2-way Option flows, particularly from Fast-money utilizing Dec Options.
Some portfolio hedges via RR, even some 75+80k Puts.
But ETF flows remain robust and large Funds accumulating blocks of ’25 dated 130k+ Calls.
2) Chart shows:
Dec+Feb+Mar 70-80k Put buys
Dec 90k-115k RR bought for the Puts.
Some Dec+Mar 90+95k Puts 2-way.
But these are overshadowed by Call spreads (hence red around 120k area), and then large clips of Jan+Feb 130k Calls, Jun 180k Call, and accumulation of Mar 150k Calls.
3) After the spike in Vol from the BTC flush <90k, IV has once again started to firm on the back of optionality demand, specifically from Jan-Mar upside buyers and even Dec Gamma demand with the threat of moves at the forefront of many minds.
CPI today, MSTR QQQ Friday?
Saylor?
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AUTHOR(S)
ex-MS Head of Trading desk /BTC Vol. Prop trading /Option Market forensics/ Alter Ego account Digital Asset arena. Tweets are my opinion, not financial advice.