JPMorgan’s Kolanovic: “$1.3 Trillion In S&P 500 Options Expire On Quad-Friday”

Jon Economy

With Nasdaq ‘VIX’ reaching 15-year highs relative to S&P ‘VIX’ in the last week, we suspect Friday’s quad-witching will be a little more noisy than normal as traders scramble to cope with $1.3 trillion of expiring S&P options…
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JPMorgan’s Marko Kolanovic lays out the details…
In our view, it will be difficult for the market to go much higher from these levels (~2,450) unless there is meaningful progress on US fiscal reform (i.e. tax cut).
Current positioning of various investors is already quite high and that poses additional risk going into weak seasonals.

This post was published at Zero Hedge on Jun 16, 2017.