How Options Trading Sets Expectations for the Stock Market

As financial markets continue their unpredictable dance in 2023, one sector has found its rhythm: large-cap stocks, specifically in the NASDAQ, which has seen a surprising 27% growth this year. With a recent 3.5% weekly increase and a 6% rise over the last month, the market continues to be dominated by the big players, with the top five or six companies contributing significantly to the NASDAQ's performance. The question remains: Can the NASDAQ continue to sprint forward, or is it running out of steam?

Options trading could be one of the best predictors of future expectations in the stock market. Although, as Untamed Ethos host Joshua Wilson pointed out in a past episode, watching the stock market trading in Congress might also create a winning trend.

In this episode of Untamed Ethos, host Joshua Wilson sits down with Dr. Russell Rhodes, Clinical Associate Professor at the Indiana University Kelley School of Business, to dissect this trend. They look at the recent performance of the NASDAQ, the underperformance of small-cap stocks like the Russell 2000, and the broader market dynamics at play.

Key discussion points from the episode include:

• The surprising surge of the NASDAQ and its implications for the market.

• The underperformance of small-cap stocks and the factors contributing to it.

• The potential future of large-cap dominance and the impact on market diversification.

• How options trading sets expectations for the stock market

About Russell

Dr. Rhodes brings a wealth of knowledge from his extensive background in finance and business, currently serving as a Clinical Associate Professor at the Indiana University Kelley School of Business. His insights and understanding of market trends offer valuable perspectives on the current state of the stock market.