The options market has become significantly more relevant in recent years. Options on individual stocks have experienced exceptional growth. In 2021, the volume of traded US options by notional exceeded the value of the traded volume of the underlying equities for the first time. Accordingly, options markets are increasingly influencing equity market movements, particularly in the US and especially in terms of market volatility and event risks. It is therefore essential to understand what this means for markets, who the major players in the options market are and how they are positioned. From these insights, the “state of health” of the equity markets can be derived to eventually make forecasts about volatility and the extent of potential sell-offs, but also rallies.
Ulrich Urbahn, Head of Multi Asset Strategy & Research, and Ludwig Kemper, Analyst Multi Asset Strategy & Research, analyse the situation on the options market.
Ulrich Urbahn has been working for Berenberg since October 2017 and is responsible for quantitative analyses and the devel-opment of strategic and tactical allocation ideas, and is involved in capital market communications. He is a member of the Asset Allocation Committee and portfolio manager of the Berenberg Variato. After graduating in economics and mathematics from the University of Heidelberg, he worked for more than 10 years at Commerzbank, among others, as a senior cross asset strate-gist. Mr Urbahn is a CFA charterholder and was part of the three best multi-asset research teams worldwide in the renowned Extel survey for many years.
Ludwig Kemper has been working as a strategist since 2019 and as a portfolio manager since 2021 at Berenberg’s Multi Asset unit. His responsibilities include the generation of investment ideas and the preparation of analyses to support investment decisions. Ludwig focuses on the commodities sector and derivatives markets. Previously, he completed a dual study programme at Berenberg in cooperation with the Hamburg School of Business Administration. In his rotations, he worked in investment banking, equity research and asset management. He received his Bachelor's degree as valedictorian of his class. Ludwig is a CFA charterholder.