”‘Dealer hedging in derivatives markets has absolutely become a factor in influencing market movement at short term horizons,’ said Garrett DeSimone, head of quantitative research at OptionMetrics.

‘I expect these hedging flows to likely exert the most influence during low liquidity periods, and following important macro news events,’ he said.”

Featuring insight from OptionMetrics, the full Reuters article, “Analysis: Options trades, lockstep moves fuel U.S. stock swings,” is available to read below.