Options Market Exhibits Divergence Ahead of Federal Reserve Meeting

Ahead of the upcoming Federal Reserve meeting in Jackson Hole, the options market is demonstrating a notable divergence, as indicated by Adam’s insights from Greeks.live on August 21st. The day saw large call and put option trades totaling $1.61 billion and $1.14 billion, respectively, accounting for over two-thirds of the overall trading volume. These transactions predominantly involve out-of-the-money options set to expire this week and next month. Notably, short-term implied volatility has also decreased, suggesting that institutional investors are anticipating limited market fluctuations as a result of the upcoming meeting.