There are always questions about what role options MMs play when it comes to stock price action especially when nearing options expiration. It is very hard to tease out and MM hedging is complicated. There is also a question of total volume vs options volume etc, hedging in underlying vs correlated instruments or indices. But right now there is a very good opportunity to observe what is possibly the cleanest expression of this dynamic playing out. VCX is a wonky ticker with about 10% float right now. It is very volatile. But look at the chart today for how the volatility has just died out in the last couple of hours. **If you have L2 data it is pretty apparent. Right now there is a giant 27k MM offer (likely fake to just keep the market range bound, since there is no natural order flow on exchange and small retail flow is coming in via wholesalers)**
What is even more curious is that as the price was dropping rapidly this morning, **there was a 21k share bid at 97.85 this morning which held the stock price in check for a couple of hours.** **Then that bid just disappeared (only a couple of hundred shares were chipped off). And then a few minutes later the offer that I am pointing to showed up. They likely want to pin the price between 95-100.**
This is a unique ticker with no natural hedging mechanism besides the stock itself so the complexities that people talk about SPX options etc where MMs can be hedging with individual stocks does not apply here.
This may also potentially provide an opportunity for selling vol into the Thursday.
Keep observing and have fun.
**EDIT: It closed at 100.78 on expiry day. I rest my case.**
