Christmas market warms up, but the real highlight is the options expiration on the 27th!
1. Christmas market shows initial signs of warming
Current market sentiment has improved, price fluctuations are small, and some funds are attempting to enter the market for short-term trades.
This warming may only pave the way for positioning before the options expiration, and investors should not be overly optimistic.
2. The options expiration on the 27th is crucial
Options expiration size: About 40% of options contracts will expire on the 27th, involving a large amount of capital settlement.
Clear signs of position shifting: Recently, the market has seen a phenomenon of options position shifting, with trading volume and open interest moving to next month's contracts, and implied volatility significantly decreasing.
3. Potential market impact
Short-term volatility intensifies: As options expiration approaches, the repricing of capital may trigger sharp fluctuations.
Direction of position shifting: It is essential to pay attention to the flow of funds after the position shifting, which may determine the market tone for next month.
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 until after the 27th for clearer market direction before deciding whether to adjust positions.
Stay vigilant, although the Christmas market is warm, the real test is still ahead.