Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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"Look at the reckless and naked call buying by these people…" Yeah, and look at the obvious Institutional hedging we’re seeing in both non-commercial futures & options contracts and the PREMIUMs being put on their puts into year end! To put this +59% implied volatility premium in SPY in context, one-month ago that was an implied volatility DISCOUNT of -4%. On that same day Tech (XLK) had an implied vol discount of -14%. Today XLK has a +51% premium! And I get it, not everyone measures and maps the ROC (rate of change) in sentiment & positioning like we do. Even if they did, they don’t always see what I see either (because they don’t have Risk Ranges to contextualize them!). That doesn’t mean these numbers cease to exist. |
