A couple of weeks ago, we predicted the market would drift higher into today’s OPEX.

As dealer long exposure @ 4065 acts as a magnet, pulling IV down hard with it.

VIX collapsing from 25 to under 19 in a week confirms our analysis.

So what’s next? ☟

↓
↓

σ Our subs are not surprised by these results, as we’ve been playing the VIX downside recently.

However, we believe that after today’s large expiry, the street will lose some of its long gamma.

↓
↓

σ This may open up some room to move back down.

Especially into earnings season, where recent developments in the banking sector will impact guidance.

↓
↓

σ With today’s continued move up in markets and VIX continuing to get crushed, we think it’s prudent to cover short-vol positions you may still have open.

Especially when you consider that these short-vol positions have priced in Easter seasonality to a large extent…

↓
↓

σ This way, you stay ahead of the game!

➠ Watch the clip below from today’s Macro Options Spotlight for more colour on these dynamics ↴

 

➠ Then watch the rest of the Spotlight to also see:

• Recap of recent price action

• Today’s Cross Asset Vol Summary

• Our thoughts on cash stuck on the sidelines as NDX threatens to breakout

• Our SPX Volatility Dashboard & SPY trade idea

σ
σ
σ

➠ Want this kind of professional macro analysis and trade ideas sent directly to your inbox to help you navigate these volatile markets?

☞ This is Options Insight’s specialty ☜

➠ Try us out for a completely free month by clicking HERE, then use code RV2023 at checkout.

σ
σ
σ

➠ Thank you for making it this far!

Cheers!

Imran Lakha
Options Insight