The Options Market Has Flipped; Top Goldman Trader Warns Gamma/Skew Extremes Mean Increasing Fragility

One of the biggest changes in the market over the last ~6 weeks has not been economic data, earnings revisions, or even geopolitics – it has been the complete reversal in the options market, according to top Goldman Sachs trader, Lee Coppersmith

• On March 27th, dealer gamma positioning hit -$7.24bn – the 2nd most negative GEX print on record, behind only Jan 2022.

• Six weeks later, dealer gamma closed Friday at +$21.3bn, now the 8th highest positive GEX reading ever recorded.