”‘We haven’t seen the systemic risks present themselves yet, but there’s a concern that if you have a big daily swing, like what we saw during March 2020, that we really don’t know how the market-making mechanism is going to react,’ said Garrett DeSimone, head of quantitative research at OptionMetrics, which provides data and analytics about the options market.”

Featuring insight from OptionMetrics, read the full MarketWatch article, “A potential stock-market catastrophe in the making: The popularity of these risky option bets has Wall Street on edge,” below.