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Market sell off 12/20/23

Posted on 12/20/23 at 2:05 pm
Posted by BourbonDad
Somewhere on the vol surface
Member since Sep 2016
192 posts
Posted on 12/20/23 at 2:05 pm
For those scratching their head watching this move today, this is what happens when $1.3T worth of derivatives expire on triple witching (which were hedged by the dealers buying the underlying while they sold calls) and the major VIX expiration cycle which expired today. Dealers been selling calls so much they had to buy buy buy to hedge their risk, but what comes around goes around.....
Posted by BourbonDad
Somewhere on the vol surface
Member since Sep 2016
192 posts
Posted on 12/20/23 at 2:10 pm to
This is what an unpinning of volatility looks like...as of 2pm CST





Posted by BourbonDad
Somewhere on the vol surface
Member since Sep 2016
192 posts
Posted on 12/20/23 at 2:12 pm to
To be clear, we probably get the usual vol selling and get a whiplash bounce and continue this move into Jan 17. But this is the mechanics of the move, despite whatever "catalyst" they blame it on.
Posted by OysterPoBoy
City of St. George
Member since Jul 2013
35157 posts
Posted on 12/20/23 at 2:22 pm to
This ones on me guys. I made a sizable investment yesterday.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/20/23 at 2:25 pm to
quote:

This ones on me guys. I made a sizable investment yesterday.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/20/23 at 2:28 pm to
quote:

Market sell off 12/20/23
To find when the Dow Jones was this low you have to go all the way back to last Thursday...
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11107 posts
Posted on 12/20/23 at 2:29 pm to
A generational buying opportunity
Posted by FLObserver
Jacksonville
Member since Nov 2005
14468 posts
Posted on 12/20/23 at 2:40 pm to
quote:

This ones on me guys. I made a sizable investment yesterday.

Dammit man! You need to disclose these types things. Had i known this i wouldn't have been buying this morning.
Posted by BourbonDad
Somewhere on the vol surface
Member since Sep 2016
192 posts
Posted on 12/20/23 at 2:40 pm to
I'm explaining an intraday move, not implying a sell off in the traditional sense. Dow doesnt mean shite either....come back late january and tell me how you feel.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/20/23 at 2:49 pm to
quote:

Dow doesnt mean shite either.
Okay, to find when the S&P500 was this low you have to go all the way back to....uh....also last Thursday.

Better now?
Posted by TDTOM
Member since Jan 2021
14550 posts
Posted on 12/20/23 at 2:56 pm to
quote:

a whiplash bounce and continue this move into Jan 17


What time on Jan. 17th?
Posted by Hookah
Member since Nov 2023
94 posts
Posted on 12/20/23 at 3:09 pm to
quote:

continue this move into Jan 17


Be specifically clear so we can have you on record. Continue what exactly into January?
Posted by JLivermore
Wendover
Member since Dec 2015
1424 posts
Posted on 12/20/23 at 3:29 pm to
Your trading call from early November has been right on the money thus far. Folks who put money to work there have done quite well in a very short amount of time.

The second part of it is still one hell of an ask, and not sure I agree, but I appreciate you willing to take your shots and sharing them here.
Posted by BeYou
DFW
Member since Oct 2012
6025 posts
Posted on 12/20/23 at 3:48 pm to
quote:

To be clear, we probably get the usual vol selling and get a whiplash bounce and continue this move into Jan 17. But this is the mechanics of the move, despite whatever "catalyst" they blame it on.


Cem is that you?
Posted by deltaland
Member since Mar 2011
90629 posts
Posted on 12/20/23 at 4:07 pm to
Seems there is always a sell off near the holidays. Usually firms closing positions and such for end of year
Posted by BourbonDad
Somewhere on the vol surface
Member since Sep 2016
192 posts
Posted on 12/20/23 at 4:09 pm to
ive been calling for a year end rally that would last into Jan 17th before a rug pull. Pending how this dip is soaked I may pull forward the Jan 17 but for now it stands.
Posted by BourbonDad
Somewhere on the vol surface
Member since Sep 2016
192 posts
Posted on 12/20/23 at 4:09 pm to
probably noon
Posted by BourbonDad
Somewhere on the vol surface
Member since Sep 2016
192 posts
Posted on 12/20/23 at 4:10 pm to
bro keeping HODLing until your 401k loses 50%. this is the end of a 20yr rate cycle. People have short memories of what can happen, i.e. 5-10yrs of sideways
Posted by Hookah
Member since Nov 2023
94 posts
Posted on 12/20/23 at 4:34 pm to
What’s special about Jan 17?
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/20/23 at 5:55 pm to
quote:

bro keeping HODLing until your 401k loses 50%.
I guarantee you that I won't lose 50% in a 401(k).

I won't even lose 1% in a 401(k).

But thanks for your advice, Nostradamus.
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