March 17, 2023· 54 min

What the Dramatic Boom in Zero-Day Options Means for Stocks

Charlie McElligott

Orality

Model

50%

Speaker Breakdown

HostTracy Alloway(1,705 words)

M:29%

HostJoe Weisenthal(1,658 words)

M:29%

GuestCharlie McElligott(6,091 words)

M:28%

Oral Indicators

Agonistic26%

crazy, basically, huge

Engagement69%

you, our, your

Memory Aids100%

listen, okay, like

Repetition100%

know (202x), like (126x), right (97x)

Parallelism80%

And I'm Joe Weisenthal...., But, yeah, something crazy hap..., So for those who might not rem...

Sound Patterns80%

84 question(s), alliteration: "markets move", alliteration: "barclays brief"

Formulaic Phrases6%

at the end of the day, i mean, the thing is

Literate Indicators

Hedging8%

could, maybe, might

Passive Voice4%

was even, be used, been rolled

Abstract Nouns18%

investment, information, volatility

Subordination8%

because, until, since

Sentence Length41%

Avg: 15.2 words/sentence

Word Complexity45%

investment, analyze, anticipate

Academic Markers0%

Impersonal Style31%

725 personal pronouns found

Descriptive Style85%

monthly, carefully, exactly

Description

Zero- and one-day options give investors the ability to bet on the daily moves of the S&P 500. In recent months, both big institutional investors and retail traders have gotten in on the action, creating a boom in trading volumes of these short-lived contracts and sparking an intense debate over their effect on the market. So what exactly is driving their popularity and why are some Wall Street analysts so divided on whether such options will cause a rerun of the “volmageddon” that we saw back in early 2018 and that caused a big drop in stocks? Nomura Securities International Inc. strategist Charlie McElligott walks us through these new trading contracts, explaining how they work, why people are snapping them up, and what their impact on the market could be. See omnystudio.com/listener for privacy information.

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