Ready for some insights on stock market volatility trends?
This blog post will keep you ahead of the game.
#SPOILER: Use the graphic below to get an unmatched, eagle-eye view via my vol dashboard.
Let’s dig in
US stock market spent most of last week supported by the vol compression post-CPI that led to #OPEX buying flows from dealers due to #Vanna & Charm effects.
These effects were exhausted by Thursday night, and #SPX broke below key 4100 support as macro forces took hold again.
#Europe outperformed and saw inflows resume, whilst #China saw its second week of outflows and closed down 2%.
Down as macro event risk from #CPI got priced out since there weren’t any significant enough moves to trigger panic buying of options.
European and Japanese vols look low.
Might be worth owning into early March to make a play.
All indices are now back into positive carry except for #NDX – but it is heading there fast.
Lowest vols like #NKY or #UKX have been the best short gamma candidates.
But I would go with spreads to keep theta bleed down.
Held up much better than implied vol this week as the event vol reset took down ATM.
But the downside #put bid was preserved and even increased in $NDX.
Also, skew has risen recently as investors added exposure to stocks in Jan.
They now have more reasons to hedge when markets look a bit shaky.
How do you feel about looking at markets through the lens of our Volatility Dashboard?
Let me know in the replies!
#options #trading #equities #volatility #markets
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