Ep. 6 The Importance of Positioning

Trader Chats

In this episode Imran Lakha, founder of OPTIONS INSIGHT, talks to Brent Kochuba, founder of Spotgamma.

Brent has been an options trader for many years working on both the sell-side as a market-maker and on the buy-side for a family office. He setup Spotgamma two years ago to provide data on options market positioning in equity markets and his models have become an almost must have for derivatives traders in the industry. In this conversation, they discuss why positioning matters so much for trying to predict short term moves in markets and how these can be amplified when options get involved. An obvious example is the dramatic impact of options flows on the some of the recent "gamma squeezes" in meme stocks such as Gamestop and AMC, which Brent monitors closely in his models. They discuss some of the embedded assumptions in Brent's model, and how overlaying the skew of the volatility surface over gamma open interest can help to identify dealer positioning and also predict the impact of large expiries on the underlying stocks or indices. Finally, they touch on crypto markets and whether positioning data is as readily available or as predictive in the still relatively new market. To learn more about OPTIONS INSIGHT please visit www.options-insight.com or email [e-mail] NONE OF THE MATERIAL IN THIS PODCAST SHOULD BE CONSIDERED AS INVESTMENT ADVISE, IT IS FOR INFORMATIONAL AND ENTERTAINMENT PURPOSES ONLY. ALWAYS CONSULT A REGISTERED INVESTMENT PROFESSIONAL BEFORE MAKING INVESTMENT DECISIONS. THE VIEWS AND OPINIONS EXPRESSED ON TRADER CHATS ARE THOSE OF THE PARTICIPANTS AND DO NOT NECESSARILY REFLECT THOSE OF THE HOST. OPTIONS INSIGHT OR IMRAN LAKHA SHALL NOT BE LIABLE FROM LOSSES RESULTING FROM INVESTMENT DECISIONS BASED ON INFORMATION OR VIEWPOINTS PRESENTED ON TRADER CHATS.