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A $2 Trillion Stock-Options Deadline Is Make-Or-Break Moment for Bulls

  • Options trading seen having lifted stocks, capping volatility
  • Brace for price swings in both directions: Nomura strategist

With August shaping up to be the calmest month this year for US stocks, traders are closely watching Friday’s $2 trillion options expiration for hints whether the tranquility will last. 

At issue is the belief that derivatives markets have somehow played a key role in suppressing volatility, thereby compelling rules-based quant traders to buy shares and in turn luring a broader group of investors back into the market in order to chase gains