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Ol’ Wisco | Funds are actually long option delta. That doesn’t necessarily mean they are bullish. Market makers have pushed implied volatility and option skew up real fast. I would reason to say that’s where the funds ended up going from short option delta to long was in a volatility trade. Question on the funds front is do they hold those long options positions or dump them. In regards to the MM pushing skew means likely a big swing could occur if weather changes the scope of the trade to the upside. It also means there is a lot of demand for upside options. If those traders are wrong and they jump ship at once it get ugly to the downside.
The next 4 weeks are gonna be fun that’s for sure. | |
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Not quite done? (charts)
