Market Prep: Week of May 16, 2022

Hey Traderade Family, hope you've had a relaxing weekend away from the trading screens! We finally got some nice weather in my home state of Michigan, so like every Michigander I spent most of the weekend outside doing yardwork...needless to say I'm excited to get back to the trading desk and dive into the charts. :) It's time again for everyone's favorite trading week: Options Expiration Week! (deep sarcasm...I hate OpEx week). If you've followed my work for a while you'll know this isn't my favorite week to trade. OpEx week tends to product some wacky price action, and considering liquidity hasn't been great as it is, I expect this week to be fairly wild. Truthfully, I'm hoping this week provides some closure to the recent volatility & hedging we've seen across the board. If you remember a few weeks back Mayhem and I talked about looking for the hedges to roll off post-FOMC...well they didn't really, and the market volatility continued. It's not uncommon for larger participants to enter OpEx week hedged, so I'm personally hoping to see a lot of those downside hedges roll off by the end of this week allowing for some bullish low-volume trading.

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