Negative Gamma And Low Liquidity Signal A Rough Road Ahead

The market is entering a phase where volatility may expand due to negative gamma positioning, low liquidity, and fading option expiration effects.

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The market is entering a critical phase where volatility is poised to expand due to negative gamma positioning, low liquidity, and fading option expiration effects. Tight overnight funding conditions and elevated dispersion readings further suggest that risk assets may face renewed downside pressure in the weeks ahead.
 

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