Something Is Very Wrong Beneath The Surface Of Tech
The volatility explosion
Same Nasdaq levels, a very different volatility regime. Tech implied volatility has surged 40% in little over a month, weekly NDX implied moves have doubled, and relative tech fear is approaching historical extremes. Meanwhile, credit stress is feeding into volatility, downside skew is repricing, and momentum traders are enduring a record year of violent swings. The indices may look relatively calm, but beneath the surface, volatility is anything but.