As stock options linked to a market value of $2.5 trillion are about to expire, Wall Street's panic index hit its highest level this year on Thursday. This may indicate that the US stock market is about to face a turbulent trend.
Asym50 founder Rocky Fishman shared a research report with MarketWatch on Thursday, in which he pointed out that options with a nominal value of $1 trillion linked to individual stocks, stock indices, exchange traded funds (ETFs), and index futures will all expire on Friday. Out of this $2.5 trillion market value, $1.7 trillion is linked to the S&P 500 index through futures, SPDR S&P 500 Index Trust ETFs (SPY), or cash settlement contracts tracking the index.
The expiration date of large options usually leads to a large amount of trading on 16 options exchanges in the United States, and its impact may occasionally affect the overall market, causing increased intraday volatility.
According to FactSet's data, the Chicago Board of Options Volatility Index (Cboe
As stock options linked to a market value of $2.5 trillion are about to expire, Wall Street's panic index hit its highest level this year on Thursday. This may indicate that the US stock market is about to face a turbulent trend.
Asym50 founder Rocky Fishman shared a research report with MarketWatch on Thursday, in which he pointed out that options with a nominal value of $1 trillion linked to individual stocks, stock indices, exchange traded funds (ETFs), and index futures will all expire on Friday. Out of this $2.5 trillion market value, $1.7 trillion is linked to the S&P 500 index through futures, SPDR S&P 500 Index Trust ETFs (SPY), or cash settlement contracts tracking the index.
The expiration date of large options usually leads to a large amount of trading on 16 options exchanges in the United States, and its impact may occasionally affect the overall market, causing increased intraday volatility.
According to FactSet's data, the Chicago Board of Options Volatility Index (VIX), also known as Wall Street's "fear index," closed above 21 points on Thursday. According to FactSet's data, this is the highest level since March 24th of this year, reaching a new six month high.