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On the eve of the VIX and SPX futures expiration we can expect a rather calm market. The main open interest and the maximum negative gamma is located at strike 4000, which acts as support for the market. The maximum positive gamma is located at the 4200 strike, which is the main resistance. Options traders do not look for high index prices and sell calls and buy puts when the price approaches 4200.
The 4,100 level is a trigger for rising volatility, and in Friday's session, volatility sellers successfully defended this level. Options traders have large put positions below current values, so I do not expect the VIX to rise.
Sentiment in the dark liquidity market is more than optimistic. The DIX index hit an all-time high on the SPX decline and has generally been in the buying zone for a long time. Looking forward, this is a positive signal for the stock market, and we can see how institutional investors are set up and where to expect the index going forward.
There are two trading weeks left before the SPX expires, and the market probably won't show us anything interesting during that time. In the meantime, I interpret traders' behavior as "pressure on the index with the potential for further growth in the medium term."
On the eve of the VIX and SPX futures expiration we can expect a rather calm market. The main open interest and the maximum negative gamma is located at strike 4000, which acts as support for the market. The maximum positive gamma is located at the 4200 strike, which is the main resistance. Options traders do not look for high index prices and sell calls and buy puts when the price approaches 4200.
The 4,100 level is a trigger for rising volatility, and in Friday's session, volatility sellers successfully defended this level. Options traders have large put positions below current values, so I do not expect the VIX to rise.
Sentiment in the dark liquidity market is more than optimistic. The DIX index hit an all-time high on the SPX decline and has generally been in the buying zone for a long time. Looking forward, this is a positive signal for the stock market, and we can see how institutional investors are set up and where to expect the index going forward.
There are two trading weeks left before the SPX expires, and the market probably won't show us anything interesting during that time. In the meantime, I interpret traders' behavior as "pressure on the index with the potential for further growth in the medium term."
