Hawkish Fed/ECB Sparks "Biblical" Negative Delta Flow, Heavy CTA Selling; 0DTE Specs Evaporate

2022 is set to end up as one of the more volatile years on record, led by rapidly rising interest rates and high inflation, and while we note that December is (so far) on track to be the least volatile month of this high volatility year, the recent 'surprise' hawkish comments/actions from The Fed and ECB (right as the market convinced itself 'enough is enough') will likely exacerbate that into the ultra-low liquidity of year-end...

Notably five of the seven most volatile years since 1940 have been in the past 15 years.