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Why Stocks Can’t Sell Off
The nascent rebound in skew is history. It was (mostly) snuffed out early this week.
Between indefatigable (you might say "tyrannical," depending on your perspective) vol supply and a sustained asymmetry between demand for downside protection (limited interest) versus upside optionality (high appeal) tied to low nets, the flattening resumed.
As noted here on countless occasions over the past two months, almost always in the context of a reminder from Nomura's Charlie McElligott, steep skew is
I keep on waiting, for Uvix to bottom, but your right every time I think it might. I promise myself to wait one for day for confirmation, which hasn’t come in over 6 months.