A Massive Expiration | The OPEX Effect | January 2024

In this episode, we take a deep dive into the January 2024 options expiration and its potential implications for the market. We discuss why this expiration could be a significant market event, what the behind-the-scenes details of the expiration look like and why the story is even more interesting in single stocks than it is for the S&P 500. We also get an update on the MAG 7 stocks, look at why volatility has been muted and discuss the implications of the rise of 0DTE options.

#optionsinvesting #optionsflows

00:00 - Intro
01:10 - The options expiration cycle
02:40 - Options expirations as market turning points
07:46 - A look at the January OPEX
13:19 - The big January expiration in single stocks
17:09 - The return profile of LEAPS vs. stock ownership
20:57 - What's Moved: Looking back at the ideas from our last episode
23:09 - The importance of thinking in probabilities
26:01 - The December 2021 analogy
30:42 - Low realized volatility and its causes
34:07 - The short volatility trade
38:13 - Looking ahead at the February OPEX
41:21 - Fixed strike vol vs. the VIX
45:01 - Getting an update on the MAG 7
53:23 - An updated look at 0DTE options

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