1) Shorted dated options have lots of gamma which amplifies the effects of this exponentially.
2) There are very few discretionary investors left, most are index funds. They targeted a few names which have outsized influence on indices. This in turn forces passives to buy those same names in order to keep tracking error low. Which then amplifies the effects from point 1, giving SB pnl which they can lever to repeat the cycle.
2) There are very few discretionary investors left, most are index funds. They targeted a few names which have outsized influence on indices. This in turn forces passives to buy those same names in order to keep tracking error low. Which then amplifies the effects from point 1, giving SB pnl which they can lever to repeat the cycle.
Source: hf head of quant trading