ChainCatcher news, Greeks.live macro observer Adam posted on the social platform that with the successive implementation of PPI and CPI, the market’s volatility expectations have dropped significantly, which in turn has promoted a significant decline in the IV of each major term.

Short-term IV fell by more than 20% this week, while medium and long-term IV also fell by about 5%. This kind of decline in implied volatility IV is relatively rare in the options market. Sellers, mainly institutions, can recoup 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 solid structure of far high and near low, the market may settle for a period of time.