So, as I was saying, there was an interesting trend in the options market last week.
Namely, for the first time in ages, options trading actually slowed down!
As you probably know, options have exploded over the last year-plus, and we’ve seen record volume in options traded.
But this week we saw a pretty significant pullback.
I actually noticed the weird pricing back about 2 weeks ago for this Friday and started skipping out to Dec-03 on most of the KTC trades that extended.
What gives?
Well, there’s two possibilities:
The easiest explanation is simply that in a half-week of trading, with the holidays underway, folks just weren’t that interested in placing options calls or puts last week.
And that could be possible.
If it is, we might see a big uptick in trading volume this week, which could lead to quick movement in the market one way or the other.
On the other hand, it could signal an overall slowdown of markets heading into the holiday season.
That’s what this article seems to expect, namely that the markets will be choppy through the uncertain Christmas buying season.
So at the moment, it’s anyone’s guess. But this riddle will probably resolve itself pretty quickly as we monitor volume in the early part of the week.
Hope you’re ready to get back to it,
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