Zero Days Can Go Both Ways

0DTE options flipped from Friday Calls to Monday Puts

For the last three weeks we have seen the zero days to expiration options primarily buying calls. This has driven the S&P and NASDAQ higher to positive gains YTD today. Just when you thought this market couldn’t get any more erratic, Monday brought a flip from call buying to put buying. SPY Jan 30 was well above average so much so it drove the S&P500 down 1.3% and the Nasdaq down 1.96%. Will this be the theme for the rest of the week? Only time will tell. But I suspect we could see continued downward pressure on the QQQ ETF as we wait for Amazon and Apple to report earnings later this week. Oh, and don’t forget about the Tuesday, Wednesday, Fed meeting, and the feds speech on Wednesday at 2 PM Eastern. I’m not suspecting anything different than what the phone has been doing and that is raising fed funds rate another 50 basis points. I wish they would just raise 75 basis points and get the fed funds rate. 5.25 and be done with it. But I don’t think that’s gonna happen.

Putting on a Limit Trade