A recent article explores how the explosion of zero-day and ultra-short-dated options is shaping equity market behavior. Garrett DeSimone, Head Quant at OptionMetrics, explains that these short-option strategies tend to look profitable in calm markets but can quickly unravel when volatility spikes, wiping out long periods of gains and pushing investors to exit the strategy out of frustration. His analysis helps clarify why these tactics may be contributing to muted equity rebounds.

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