Christmas market warms up, but the real highlight is the expiration of options on the 27th!
1. Initial signs of a Christmas market recovery
Current market sentiment has improved somewhat, with smaller price fluctuations and some funds attempting short-term entry.
This recovery may just be paving the way for positioning before the options expiration, and investors should not be overly optimistic.
2. The expiration of options on the 27th is key
Options expiration scale: Approximately 40% of options contracts will expire on the 27th, involving a large amount of funds for settlement.
Noticeable rollover actions: Recently, there has been a phenomenon of options rollover in the market, with trading volume and open interest shifting to next month’s contracts, and implied volatility significantly decreasing.
3. Potential market impact
Short-term volatility may intensify: As the options expiration approaches, the repricing of funds may trigger sharp fluctuations.
Rollover direction: Attention should be paid to the fund flow after the rollover, which may determine next month’s market tone.
Advice
Short-term traders: Pay attention to options data, guard against volatility risks, and set stop-loss and take-profit levels.
Medium to long-term investors: Wait for market direction to become clear after the 27th before deciding whether to adjust positions.
Stay vigilant; while the Christmas market is warm, the real test is still ahead.