Whale’s Resurfacing Shows Options Market a Source of Turbulence
- Dealer positioning can amplify moves in thin markets: JPMorgan
- Resurfacing of the Nasdaq whale may make traders ‘jittery’
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Traders piling back into megacap technology shares need to keep an eye on the options market, where still-elevated activity sets the stage for heightened stock volatility.
While the frenetic pace of speculation in derivatives has eased a bit recently, it hasn’t stopped, and a chorus of analysts warns the trading remains capable of exacerbating swings. Monday brought the biggest rally for the Nasdaq 100 Index since April, with options-derived measures of volatility climbing in tandem.