Wider Intraday Price Swings in Stocks Prompt Options Strategies

Premialab featured again in Bloomberg News’ latest article on surging intraday volatility, the growing impact of 0DTE strategies and how banks’ QIS desks are adapting.

We’re honored to see our CEO Adrien Geliot quoted:

“0DTE strategies leveraging dealer gamma positioning is a complex area and one that is difficult to make a profitable trading strategy from. However, the space is definitely growing and banks have been launching QIS strategies on S&P and Nasdaq – but note that implementations can vary widely.” “Most strategies are trying to strike a very careful balance between risk management, signal robustness and execution efficiency,” said Geliot.

“Despite the challenges in this space - such strategies are actually performing pretty well against other defensive strategies, some of these show good performance around volatility events for example. To extract consistent alpha gains, execution is really critical, he added. “It’s not just about identifying the signal coming from gamma positioning - its about executing in a way that avoids slippage.”

0DTE strategies

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