-- Two years after Wall Street’s love affair with fast-twitch stock options began, Bloomberg’s latest Markets Live Pulse survey suggests the unprecedented boom still has room to run — even as almost half of respondents fear an eventual blowup.‘Civil War’ Is a Gift to Trump’s Opponents
The scale of the boom has stirred controversy. There are concerns the activity in ultra-short-dated options may be affecting stock volatility, while research has suggested that retail investors using them mostly lose money. The exchange at the center of the boom, Cboe Global Markets Inc., has argued that the wide range of use cases for 0DTE means the trades aren’t creating the kind of crowded one-way bet that might make the market vulnerable to shocks. Cboe expanded expirations of S&P 500 options to every work day about two years ago and later also allowed zero-day options for the Russell 2000 Index.
Asked how they would describe 0DTE, the MLIV Pulse contributors — who are predominantly in the US or Europe — were often scathing. “Gambling” was the most common phrase offered. A “slot machine in Vegas,” “atom bombs,” and “tools resulting in a wealth transfer from retail and unsophisticated institutions to exchanges and market makers,” were among the negative descriptions.
The MLIV Pulse survey is conducted among Bloomberg readers on the terminal and online by Bloomberg’s Markets Live team, which also runs the MLIV blog. This week, the survey asks if Bitcoin or large cap US tech stocks offer a safe haven. Share your views here.Canadian Natural Resources Has Announced A Dividend Of CA$1.05
James Baldwin famously said, "Anyone who has ever struggled with poverty knows how extremely expensive it is to be poor." In January 2014, long after the Great Recession but before the pandemic,...
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