TechFlow news, Adam, a macro researcher at Greeks.live, posted on X stating that the rapid market fluctuations have driven options market activity to the highest level in nearly a year, with over 15,000 block trades executed on the day and a notional value exceeding $1 billion. The largest single order was 275 iron condor spreads, with a notional value as high as $73.34 million. Judging from the option structure, this was likely a rebalancing move by market makers, indicating bearish positions were forced to liquidate at a loss.
Recently, large traders have been closing out their options positions on a significant scale—whether taking profits from long positions or cutting losses on short bets—exerting downward pressure on implied volatility (IV) increases.
