Greeks.live: With the successive landing of PPI and CPI, market volatility expectations have significantly decreased.

BlockBeats news, on August 15, macro researcher Adam from Greeks.live posted on social media that with the successive landing of PPI and CPI, the market’s volatility expectation has significantly decreased, thereby driving the significant decrease in IV of major tenors. Short-term IV has dropped by more than 20% this week, while medium and long-term IV has also decreased by about 5%. The decline in implied volatility IV in the options market is relatively rare. Institutions, as the main sellers, can replenish a lot of profits in this round of decline to make up for the hedging losses brought by huge volatility in the past month. Now that the term structure has returned to a stable structure of far high and near low, the market may settle for a while. Selling medium-term options now seems to have a better cost-effectiveness.