50 min

No Volmageddon 2.0 | No Landing for the Economy‪?‬ Broken Pie Chart

    • Investing

Derek Moore is back with ZEGA Financial CEO Jay Pestrichelli to discuss recent discussion on 0 DTE (zero days to expiration) options and potential for a new Volmageddon event due to them. Then, they again get into The Fed and the idea of hard landing, soft landing, or no landing (that’s a new one). Plus, they discuss some odds and ends within markets and the economy including some chart crimes, shipping container rates, next 12 month returns ONCE a bear market bottom is in, and why US Investment Grade Bonds are yielding less than the 3-month treasury bond at higher percentages than before.
 
 
Volmageddon 2.0 (or Volpocalypse 2.0)
What are 0 DTE Zero Days to Expiration Options
Why we now see much more trading in 0 DTE Options
Why 0 DTE options aren’t that big of a deal
What is a No Landing Economy scenario?
Why the Fed might revert back to the 90s on interest rates
If the economy is growing why do rates need to fall?
The idea of the Fed keeping dry powder just in case
Non-voting Fed members are making a lot of noise about rates
IF the bear market low is in (and that’s still an if) forward 12 month returns positive
Shipping container rates including the Rotterdam to New York down 80% off highs
Examples of 2011 expiration of SPY options available versus now (hint a lot more now)
Comparing treasury yield curves over select periods
Bankruptcies and 90-day credit card delinquencies are up (do these lack perspective?)
 
Mentioned in this Episode:
 
Jay and Derek’s prior episode ‘Now Everyone is Bullish? | Shocking Impact of Missing Just the 2 Best Days Each Year’ https://podcasts.apple.com/us/podcast/now-everyone-is-bullish-shocking-impact-of-missing/id1432836154?i=1000599235040
 
Bloomberg: JP Morgan’s Kolanovic Warns of Volmageddon 2.0’ risk in Options https://www.bloomberg.com/news/articles/2023-02-15/jpmorgan-strategist-kolanovic-warns-of-volmageddon-2-0-risk-in-options-market
 
Jay Pestrichelli’s book Buy and Hedge https://amzn.to/3jQYgMt
 
Derek’s new book on public speaking Effortless Public Speaking https://amzn.to/3hL1Mag
 
Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr
 
Contact Derek derek.moore@zegafinancial.com

Derek Moore is back with ZEGA Financial CEO Jay Pestrichelli to discuss recent discussion on 0 DTE (zero days to expiration) options and potential for a new Volmageddon event due to them. Then, they again get into The Fed and the idea of hard landing, soft landing, or no landing (that’s a new one). Plus, they discuss some odds and ends within markets and the economy including some chart crimes, shipping container rates, next 12 month returns ONCE a bear market bottom is in, and why US Investment Grade Bonds are yielding less than the 3-month treasury bond at higher percentages than before.
 
 
Volmageddon 2.0 (or Volpocalypse 2.0)
What are 0 DTE Zero Days to Expiration Options
Why we now see much more trading in 0 DTE Options
Why 0 DTE options aren’t that big of a deal
What is a No Landing Economy scenario?
Why the Fed might revert back to the 90s on interest rates
If the economy is growing why do rates need to fall?
The idea of the Fed keeping dry powder just in case
Non-voting Fed members are making a lot of noise about rates
IF the bear market low is in (and that’s still an if) forward 12 month returns positive
Shipping container rates including the Rotterdam to New York down 80% off highs
Examples of 2011 expiration of SPY options available versus now (hint a lot more now)
Comparing treasury yield curves over select periods
Bankruptcies and 90-day credit card delinquencies are up (do these lack perspective?)
 
Mentioned in this Episode:
 
Jay and Derek’s prior episode ‘Now Everyone is Bullish? | Shocking Impact of Missing Just the 2 Best Days Each Year’ https://podcasts.apple.com/us/podcast/now-everyone-is-bullish-shocking-impact-of-missing/id1432836154?i=1000599235040
 
Bloomberg: JP Morgan’s Kolanovic Warns of Volmageddon 2.0’ risk in Options https://www.bloomberg.com/news/articles/2023-02-15/jpmorgan-strategist-kolanovic-warns-of-volmageddon-2-0-risk-in-options-market
 
Jay Pestrichelli’s book Buy and Hedge https://amzn.to/3jQYgMt
 
Derek’s new book on public speaking Effortless Public Speaking https://amzn.to/3hL1Mag
 
Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr
 
Contact Derek derek.moore@zegafinancial.com

50 min