This Odd Lots podcast episode features an interview with Charlie McElligott, a Nomura strategist, discussing recent market volatility and the factors contributing to it. The conversation begins with a review of the previous week's market events, focusing on the concept of "negative gamma" and its impact. McElligott explains how crowded trades, leverage, and the unexpected economic policies of Donald Trump contributed to the sell-off, highlighting the role of leveraged ETFs and the complexities of option market dynamics. He emphasizes the importance of understanding market positioning and the interplay between various market participants in predicting market movements. The interview concludes with a discussion on the future of volatility and the potential for regime shifts in the market.
