We Are On The Verge Of Triggering Billions In Forced Selling

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by Tyler Durden
Friday, Sep 22, 2023 - 09:45 AM

While the hawkish Fed has shaken the market, an even bigger bogeyman lurks in the shadows: according to Morgan Stanley's head of Quant and Derivatives Services, Chris Metli, the point of activating significant forced selling is getting much closer.

In a note from the QDS group, Metli writes that while option dealers were long $10bn in gamma just a few days ago that has now slipped to long $4bn in gross gamma.