Why Stocks Are Tumbling Ahead Of Tomorrow's Giant $4 Trillion OpEx

Over the weekend, we predicted that with the market stubbornly rangebound, if the S&P was going to move "It will be this week as $3.7 trillion in options expires." And sure enough, markets moved - a lot - with the S&P first spiking in kneejerk reaction to the weaker than expected CPI to briefly tag 4,145 before sharply sliding more than 6% in the opposite direction after the hawkish Fed and ECB, sent spoos tumbling below 3,900...

... and all of this taking place even before the $3.7 trillion opex Friday deadline (only we now know that with some incremental data the total expiration due tomorrow has risen to $4.0 trillion according to Goldman).