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Kolanovic, McElligott Weigh In On Collapsed Stock Volatility
The market is "dominated by option sellers."
That's according to JPMorgan analysts led by Marko Kolanovic, who on Monday called volatility "artificially low."
As discussed in the latest weekly+, realized vol collapsed this month into a very compressed range of daily closing spot outcomes. Through last week, the S&P had moved 1% or more on a closing basis on only one session in April. That's conducive to an ongoing re-allocation bid from the vol control universe, which serves to further tam
Great summation, sir. Thanks.
SPX of 4100+ at this time in the cycle, whatever is sustaining it, suggests a leg down to the extent that earnings may impact it. Tech earnings have the spotlight. I’m not optimistic.