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Risk Management Tools For complex markets

Risk Management Tools For complex marketsRisk Management Tools For complex marketsRisk Management Tools For complex markets
Sample SPX Market Report

Video introduction

This is a quick introductory video that includes:

  • A brief Intro to Viking Analytics
  • Daily exhaustion (trading) levels
  • Gamma Band model
  • Residual Sentiment model

key factors in today's markets

Machine Trading is Primary

Machine Trading is Primary

Machine Trading is Primary

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The majority of financial market trading is performed by machines.  These computer algorithms are designed to maximize profit along many different timeframes.

Machines Hedge Delta

Machine Trading is Primary

Machine Trading is Primary

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As market makers and large traders create positions, they will often hedge with a delta-neutral strategy.  These portfolios can be dynamically adjusted in micro-seconds.

Option Activity Creates Order Flow

Option Activity Creates Order Flow

Option Activity Creates Order Flow

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As option expiration approaches, machine traders will unwind, close or roll  their  hedges.  This and other options order flow has a measurable impact on the underlying markets.  "Gamma" is the primary risk that delta hedgers must manage, and this becomes more important near expiration.

Gamma Effects

Option Activity Creates Order Flow

Option Activity Creates Order Flow

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In November 2018, Bloomberg published an article which described how "negative gamma" was a catalyst in the large decline in crude oil prices in Q4.  While Bloomberg highlights the importance of this information, it cannot be found on the $25,000+ per year Bloomberg terminal.  

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