UBS(US:UBS) 智通财经网·2025-11-17 00:05Core Viewpoint - The rise of "Zero-Day Options" trading strategies is significantly impacting the stock market, potentially hindering the continuation of the recent bull market that has seen record highs since mid-April [1][5]. Group 1: Market Dynamics - The popularity of short-term options, particularly zero-day options, has surged, accounting for 60% of the trading volume in the S&P 500 index [5][6]. - Investors are increasingly favoring selling call options over put options, which is creating downward pressure on any market rebounds [2][6]. - The "Iron Condor" strategy, which involves selling call spreads above the current market level and put spreads below it, has gained traction among retail investors, further influencing market dynamics [1][6]. Group 2: Market Maker Behavior - Market makers typically sell options during market uptrends and buy them during downturns to rebalance their positions, which can create a noticeable slowdown effect on market increases [2][8]. - The gamma exposure of market makers can lead to significant buying or selling pressure, particularly as the underlying asset approaches the strike prices of the options [8][12]. - A recent example showed that a 0.1% change in the S&P 500 could trigger approximately $10 billion in market liquidity due to the gamma exposure of market makers [12]. Group 3: Investor Sentiment and Strategy - There is skepticism among some investors regarding the long-term sustainability of the systematic short-selling of options, especially when driven by retail rather than institutional investors [13]. - The effectiveness of selling options strategies tends to diminish in high-volatility environments, which could lead to significant losses for investors [13].