Markets Are Calm, Then Suddenly Go Crazy. Some Investors Think They Know Why.

There’s a powerful force at work in markets that helps explain why stocks seem to do nothing for long periods and then suddenly lurch into activity.

Market players have noticed this force—known by some as a “gamma trap”—and have been devising tools to estimate its size and direction in order to predict how markets will move and to trade around it.

Hmm maybe because investors are human beings and as such they're often driven by things like greed, anxiety/panic, impatience, stupidity etc. Then theres people and entities manipulating the market itself

What part of 'the market is irrational' don't they understand?

I'm terrible at this. I should find a new gig. But I don't, I don't know why

'Think they know', is the important words...

Ok i give up

Glass.

Lokooooz

Answer: because people are calm, and then suddenly go crazy. The “market” is an inanimate object - it’s people who affect changes to it.

High speed computer buying and selling will implode again.

Gamma hedging is like trying to ride a backwards bicycle.

....facing Iranians in court and I won’t pay for anything except in cash...so...all sits still until they front their guilt...

BasTiaN_CasTle

Is this similar to nntaleb ‘s Fragility concept?

House always wins...

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