This podcast episode delves into the intricate dynamics of the options market, as Patrick Ceresno and Brent Kochuba examine the profound impact of dealer positioning and options volume on market volatility. They explore recent market anomalies, the risks of crowded trades like the dispersion trade, and the significant role of Zero DTE options amidst this volatility. By illustrating how options activity directly influences stock prices and examining key events like the August 7th VIX spike, the episode uncovers the factors perpetuating market instability while providing insights into the risks investors face in an increasingly complex landscape.
