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Options Montage: FOMC will be ZZZZZZZ

Moomoo News ·  Dec 15, 2020 06:49  · Exclusive

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By Eli, Melody

Morgan Stanley economists don't anticipate any substantive policy actions at the Dec 15-16 meeting. They still don't expect any extension of the weighted average maturity of UST purchases (market now only assigning a 10-15% probability of this occurring given positive vaccine developments and fiscal support). 

However, the Fed likely provides forward guidance on its asset purchase program to qualitatively articulate the macro conditions necessary to taper. The language will replace the "over coming months" guidance and offer the Fed more flexibility on the timing of tapering as the economic outlook evolves.

Options with increasing option implied volatility:

IPOC DBX GHIV NKE GNUS LMND SNOW RIOT SBE AMRN CLVS SRPT HUYA ATUS ARKK DBX SWI 

Options with decreasing option implied volatility:

XPEV SPLK CRIS DM KODK SOLO GME SFIX RH CPB CIEN WORK ORCL

Increasing option volume:

LAZR ABUS NNDM QS ATUS PS SPCE DBX

Increasing unusual call option volume:

ABUS LAZR NNDM QS PS

Increasing unusual put option volume:

QS ATUS PBF ZTO DM NYT GPN SIRI

Notable bettings toward broader market indices ETF on 12/14

Market-wide option volume of 33.6m contracts was in line with recent average levels, with calls leading puts 17 to 10. Index and ETF products saw relatively heavy volume, while single stock flow was moderate.

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Individuals breakdown by sectors (12/14 notable bets)

Most active sectors included Telecommunications, Health Care and Consumer Services while Consumer Goods and Utilities were relatively light. Of the 3,662 stocks with listed options, 1,439 (39%) closed higher, and 2,049 (56%) lower. Among the 500 most liquid single stocks, 30day implied volatility was lower for 305 and higher for 154. Unusual total option volume was observed in $Walt Disney Company(DIS.US)$, $AMC Entertainment Holdings Inc(AMC.US)$, $Dropbox Inc(DBX.US)$$Gap Inc(GPS.US)$ and $AstraZeneca PLC(AZN.US)$.

Tech

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Industrial

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Consumer Cyclical

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Financial

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Communication Services

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Healthcare

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Energy

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Real Estate

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Basic Materials

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Consumer Defensive

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Options Montage from moomoo news team, the most exclusive and insightful order flow details we delivered. They provide increased cost-efficiency, they have the potential to deliver higher percentage returns and strategic alternatives.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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