Listen "An Unprecedented Lack of Liquidity: What the Options Market Tells Us About What Comes Next"
Episode Synopsis
In this episode of The OPEX Effect, Jack and Brent dive deep into the market turmoil following "Liberation Day" and the implementation of new tariffs. With volatility spiking to levels not seen since the 2020 COVID crash, the hosts analyze how options markets are reacting, why liquidity has evaporated, and what investors should expect in this new higher-volatility regime. The conversation covers everything from VIX behavior to options positioning, and provides critical insights for navigating these turbulent markets.Key Topics Covered:The recent market volatility spike and why this represents a fundamental "regime change"How options market makers are reacting to the tariff announcements and subsequent 90-day pauseWhy liquidity has disappeared from markets and its impact on price movementsThe significance of this month's options expiration and VIX expirationWhy zero-DTE options are NOT the cause of recent volatilityTechnical support and resistance levels based on options positioningGold's recent surge and signs it may be ready for consolidationThe impact of increased correlation across asset classesExpectations for upcoming earnings season and its importance in this environment
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