Post by
exprohibition18 on Feb 03, 2021 7:16pm
Bigger Picture Vol is Super Cheap Based on :
a/ markets not exactly normal . realizng vol in single stock namres often exceeds 5,6 percent a day or 80% annulaziled impled vol
b/ skews elecated which should place bid pressure on atm vix
c/ at 12 mths lows like everything is behind us . Meantime bloated Fed bubble presses nosebleed levels every day . Noselbleed valuations .
d/ Gamma profiles are insane as is put call measures and use of options for exposure . All should be bidding vol
So what gives with vol at 12 mth lows ? VOl is still the transmission mechanism for risk and is squarely targted by Fed to keep risk assets bid and risk alive .