Market-Wide Options Expiry, Decreasing Gamma Threaten Stocks at Overbought Levels

  • 📰 Investingcom
  • ⏱ Reading Time:
  • 48 sec. here
  • 5 min. at publisher
  • 📊 Quality Score:
  • News: 32%
  • Publisher: 53%

Nasdaq 100 News

S&P 500,Micron Technology Inc,Western Digital Corporation

Stocks Analysis by Michael Kramer covering: Nasdaq 100, S&P 500, Micron Technology Inc, Western Digital Corporation. Read Michael Kramer's latest article on Investing.com

down around 20 bps, but with 297 stocks up and just 204 down on the day. Tomorrow is the big quadruple witching day, with a large amount of gamma due to roll-off in the options market.

The market-wide options expiration date and decreasing amount of gamma could allow the market to turn lower and the recent rally to finally break from a timing perspective. It isn’t unusual to see the market change trends around OPEX dates.Additionally, as discussed over the weekend, the NASDAQ 100 has a rising wedge pattern in the potential throw-over phase, a 100% extension, and a 61.8% extension from two different points over the past 18 months. It seems like a good place to turn.

Now, it could be entirely by chance; however, a 61.8% retracement in the NASDAQ 100 of the entire rally off of the October 2022 low would bring the NDX back to the lows seen in October 2023, wiping out all of the gains witnessed since then.You can look at the setups, and considering how over-bought the markets are, it is possible to see something of that size. Fundamentally, PE ratios are high, and fundamentals won’t support this market.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 450. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Market Indicators You Need to Watch to Spot a Potential Rally Post CPI, FedStocks Analysis by Michael Kramer covering: S&P 500, Dow Jones Industrial Average, US Small Cap 2000, Apple Inc. Read Michael Kramer's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Nasdaq 100: 5 Stocks Are Responsible for 80% of the GainsStocks Analysis by Michael Kramer covering: Nasdaq 100, Microsoft Corporation, Amazon.com Inc, NVIDIA Corporation. Read Michael Kramer's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Stocks Week Ahead: Volatility to Spike Amid High-Stakes Data Releases This WeekStocks Analysis by Michael Kramer covering: USD/CAD, S&P 500, CBOE Volatility Index. Read Michael Kramer's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Stocks Set to Face Headwinds as September Rate Cut Hopes FadeStocks Analysis by Michael Kramer covering: USD/CAD, Nasdaq 100, S&P 500, NVIDIA Corporation. Read Michael Kramer's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »