Extreme Call Buying | The OPEX Effect | February 2024
The OPEX EffectFebruary 13, 202401:07:43

Extreme Call Buying | The OPEX Effect | February 2024

In this episode, we take a deep dive into the February 2024 options expiration and its potential implications for the market. We discuss the extreme level of call buying occurring in the tech space and what it might mean going forward. We also cover volatility, skew, the price of downside protection, tech domination of the S&P 500 and a lot more.

#options #optionsflows

00:00 - Intro
01:37 - Understanding the options expiration cycle
04:24 - Options flows and the 2020 bear market
07:03 - Front running options expiration
13:48 - Looking at the February 2024 OPEX
17:18 - Is volatility rising?
19:53 - Looking back at the January options expiration
23:16 - VIX expiration and OPEX
29:39- Looking back at what moved from our previous episode
32:35 - Vol gets sold into weakness
37:11 - What's moving: February 2024
38:41 - Downside protection is very cheap
41:44 - Heavy call skews
50:42 - Looking at skew in NVDA and SMH
57:04 - Tech domination in the S&P 500

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https://excessreturnspod.com/opexeffectfebruary2024.pdf

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