re: Talk about a market turn around!

"people think the markets been moving higher on actual equity buying. But it hasnt. Last few months have been non stop call buying only (nobody wants to buy the crap this overvalued). When you sell call options to call buyers you buy the underlying asset to hedge your risk (call buyer will make money but you will lose hence the hedge). March 15 was a quarterly expiration cycle where $1T worth of notional hedge expired (i.e. they suddenly had a massive hedge but nothing being hedged). So if people dont continue to buy more calls, the dealers have a massive bag hold.

Also, ive said this for ever but nobody on this board listens to me, that there will be a total unpinning of volatility. Its been two sumo wrestlers stuck against each other for months. Looks stable til it isnt.