Investing in options options on index ETFs like SPY and QQQ

Options on index ETFs like SPY and QQQ are displaying record short-term gamma exposure. Traders investing in options here are attempting to leverage intraday volatility while remaining nimble against macroeconomic headlines. Bid-ask spreads have narrowed this week, illustrating improved liquidity conditions. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. The trade-off, of course, is that in lowering risk exposure, investors are likely to earn lower returns over the long run. That trade-off may be fine if your goal is to preserve capital and maintain a steady flow of interest income. Tech sector options, particularly on MSFT and AMZN, are experiencing elevated gamma risk due to accelerated share price momentum. Investing in options here has attracted momentum traders who are buying high-delta calls to capitalize on short-term directional moves. Market makers are adjusting spreads as liquidity tightens ahead of major economic announcements.