Friday’s SPX Options Chain Already Priced in Today’s DropToday’s sharp 2.2% SPX decline wasn’t a surprise for those who looked closely at the options metrics after Friday’s spot price fakeout . Ahead of the long weekend, market participants priced in the downside with both short- and long-term options .
BEFORE TODAY OPEN
Put options were nearly twice as expensive as calls at equivalent Expected Move distances before Tuesday's open!
BEFORE TODAY CLOSE
While today’s drop has led to some call skew on weekly options, suggesting a short-term rebound , the long-term bearish sentiment remains intact.
Key unemployment data this week will be crucial for the market’s next move.
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