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The volatility gripping equities has fueled record activity in the options market. Trading volume in S&P 500-linked contracts surpassed 4.8 million on Monday, more than 50% above last year’s daily average, according to Cboe data.
In particular, zero-day-to-expiry (0DTE) options have dominated trading, making up over half of all S&P 500-related options activity in recent weeks. These high-risk contracts, often compared to “lottery tickets,” allow traders to speculate on rapid intraday swings but can also exacerbate volatility.
Options trading in individual stocks has surged as well, with names like Nvidia, Tesla, and Apple seeing the highest activity. Despite the broader market weakness, Slimmon sees select buying opportunities in Wall Street banks, battered Big Tech names, and semiconductor stocks that have pulled back sharply.
Market on Edge: Will Volatility Lead to a Deeper Pullback?
With the S&P 500 hovering near correction levels and volatility rising, the market remains vulnerable to further downside. The near-term outlook hinges on the Fed’s response to economic uncertainty and the potential for further trade escalations.
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