According to Odaily Planet Daily, Greeks.live macro observer Adam wrote that as PPI and CPI were successively implemented, market volatility expectations dropped significantly, driving a significant decline in IV of major maturities.
Short-term IV fell by more than 20% this week, and medium- and long-term IV also fell by about 5%. This drop in implied volatility IV in the options market is relatively rare.
Sellers, mainly institutions, can make up for a lot of profits in this round of decline to make up for the hedging losses caused by the huge fluctuations in the past month. Now that the term structure has returned to a stable structure of far highs and near lows, the market may settle for a while.
