Investors 'Literally Gambling' With Zero-Day Options, Says Academy's Tchir

The video discusses the rise of daily and weekly options in the market, highlighting their impact on trading volumes and market volatility. It explains the self-fulfilling nature of these trades, where buying options can lead to exaggerated market movements. The discussion also covers the high leverage associated with short-dated options and the potential for regulatory intervention. The video concludes with projections on future market trends and the challenges of interpreting market signals due to amplified volatility.

What are the implications of the increase in daily and weekly options trading on market behavior?

How does the buying of short-dated call options lead to self-fulfilling price movements?

Discuss the potential risks associated with the high leverage of short-dated options.

What role do algorithms play in the current trading environment, especially concerning liquidity?

How might the current trends in options trading lead to unexpected market downturns?

In what ways can the volatility of the market be affected by the trading of zero-day options?

What are the consequences of the rapid shifts in market positioning due to short-dated options?