“For all the dire warnings, various gauges show options markets are taking this fast-tracked revolution in their stride. Whether it’s the ratio of calls to puts, buyers to sellers, or institutional to retail investors, the data present a picture of a remarkably well-balanced market showing none of the tell-tale signs of imminent implosion.

And yet that hasn’t been enough to dispel concerns in some quarters about the havoc zero-day options might wreak in stressed markets. These products are highly leveraged by design, meaning they could amplify price moves should the market suddenly break out of its usual state of equilibrium.

‘These options have only been around for a year and we haven’t seen the market being properly tested in a crisis environment,’ said Garrett DeSimone, head of quantitative research at data provider OptionMetrics.”

Featuring insights from OptionMetrics, the full article, “Zero-day options: timebomb or new normal?,” is available below.