Brave New Markets

Last year, Nomura's Charlie McElligott suggested that every session had become its own self-contained narrative -- that each trading day was "its own ecosystem." Part and parcel of that reality was pervasive day-trading in very short-dated options. In 2022, it became apparent that such behavior was no longer the sole purview of retail investors. Vol traders at some of the "largest funds on the Street" were likewise rolling the dice in 0- and 1-days-til-expiration (DTE) options, McElligott said.