The Christmas market is warming up, but the real highlight is the options expiration on the 27th!
1. Christmas market shows initial signs of recovery
• Current market sentiment has improved, with smaller price fluctuations and some funds attempting short-term entry.
• This warming may only pave the way for positioning before the options expiration, and investors should not be overly optimistic.
2. Options expiration on the 27th is critical
• Options expiration scale: About 40% of options contracts will expire on the 27th, involving a large amount of funds for settlement.
• Clear rollover actions: Recently, there has been a phenomenon of options rollover in the market, with trading volume and open interest shifting to next month's contracts, and implied volatility (IV) significantly decreasing.
3. Potential market impacts
• Increased short-term volatility: As the options expiration approaches, re-evaluation of funds may trigger significant volatility.
• Rollover direction: Attention should be paid to the flow of funds after the rollover, which may determine next month's market tone.
Suggestions
• Short-term traders: Pay attention to options data, guard against volatility risks, and set stop-loss and take-profit levels.
• Medium to long-term investors: Wait for clearer market direction after the 27th before deciding whether to adjust positions.
Stay vigilant; while the Christmas market is warming up, the real test is still ahead!
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