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Goldman: June Op-Ex Is "A Literally Massive, Repeat Massive" $3.2 Trillion

Tyler Durden's Photo
by Tyler Durden
Sunday, Jun 05, 2022 - 11:22 PM

A feud is erupting within the Goldman trading floor, where a group of traders led by the bank's head of hedge fund sales, Tony Pasquariello, are turning more bearish by the day and appear to be set on a ideological convergence crash course with BofA's Michael Hartnett (of "The Market's Summer From Hell Begins, And Just One Thing Can Stop It" fame), while what's left of the bulls finds solace in the weekly musings from flow trader Scott Rubner, who did not disappoint (his fan group) and as he writes in his first June Tactical Flow of Funds note (which is a must read for all bulls, and is accessible to professional subs in the usual place), he is extending his "tactical, unloved, equity rally call for another few weeks into June." Rubner notes that "the number #1 question to hit my inbox this week: Could we rally through the end of the quarter?, a view which he explains "is not consensus", and which he answers with a decisive yes, adding that "this is the best market technical set up for a rally that we have seen in 2022, and the buyers come out higher. Outflows just flipped to inflows", but perhaps more importantly, in less than two weeks the market faces a gargantuan op-ex where over $3.2 trillion (near an all time high) in options expire, and which will spark a historic "gamma unclenching", which if tactically coupled with a surge in buybacks and a short squeeze, could see this market explode higher into the third fourth of the month.

Below we excerpt the key bullish highlights from Rubner's note (which, again, is available to pro subs).

JUNE INFLOWS?