Just another bear market rally


Just another bear market rally. The Market Ear with the note.

VVIX – inverse panic
Believe it or not but VVIX is pretty much back to recent lows, currently printing 88.88….VIX is down over past sessions, but the gap vs VVIX remains huge. Low VVIX does not mean the VIX must collapse as the low skew affects VVIX a lot. Nevertheless it is worth noting: stress is fading further…
Put frustration
Nothing really new, but the crowd managed “loving” puts as the market made a local low. Most people tend to buy protection when they must, and not when they can. This results in hedges losing value quickly, feeding the loop of “who needs protection bro…it only costs money”.
What risks are options markets showing?
By now even the people that don’t trade volatility should be aware of the fact skew has collapsed. JPM shows how skew has flattened, while upside has seen a bid, shifting the curve into…

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