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How Market Makers Cashed In On Jobs Day 0DTE Frenzy
It never gets old. Waking market participants up to what's really going on behind the scenes, I mean.
Modern market structure is a helluva thing (which is to say a lot of fun) to observe if you know what you're looking for. And totally befuddling (read: frustrating) if you don't.
January 5, 2024 -- so, payrolls day in the US -- was the 0DTE show. You probably didn't realize it. Don't feel bad. The financial media didn't either. In fact, scarcely anyone outside the options space has a good feel
But …. didn’t I read that the market reaction reflected investors sober analyses of the economic data? Not true?
Pragramatically, mayn’t investors who aren’t part of the 0DTE coterie ignore intraday action, aside from a general awareness of 0DTE and the tail risk should a session breach the lines? If so, this is useful as we then needn’t spend time seeking other explanations for stock action.
I love the fact that you just used the contraction, “mayn’t”. I don’t know that I’ve ever actually seen that in writing before.
Wait ’til the cool kids are all mayn’t and mightn’t, and remember you read it here first!