Another 5 Trillion in stock options expired today

What’s an option?

Options have reasoning, popularity since their introduction to the market. For investors they are simply way to shield against the staggering volatility. Stock options tied to stock will allow you to either buy (call) or sell (put) underlying stock at predetermined price (exercise price) in the event the market moves in your favor. The name is derived from the fact that if the market moves against your favour, you still have the option to back out, no questions asked.

What’s the Rizz

For the second time in history, call options today, 15, March 2024 pass the 5 trillion dollar mark I think it is historically in the clouds, and also higher than the stock itself. This 5 trillion was mainly dominated by call options in the AI and Tech space. Which one the surface resembles that most investors perceive the market as bullish.

What it Means

However, not all that glitters is Gold. Historically there has proven to be deteriorations in call option expires for the underlying stock if there is solid evidence that proves otherwise. This was a self fulfilling prophecy today as Nvidia retraced in its ball run, S&P 500 was down five points and even Dow Jones was down by 0.2 percent.

The market seems pretty convinced that AI is more than just a bubble at least for the meantime, however, the purchase of all options also suggest that there is some degree of doubt. It is up to the fortunate market watches to see it unravel according to Yahoo Finance

Looking Forward

Does it resemble a suppressed worry the Bears will be running soon ? Or does it resemble a more cautious investors class playing the cards it’s dealt?

Either way stay tuned to FinancialRiz for the all the latest updates in financial, business and economy news.