Path To Equity Melt Up Cleared By Option Expirations, Benign CPI

Authored by Michael Ball, Bloomberg macro strategist,

The December VIX option expiration on Wednesday morning and the larger monthly expiration Friday is hitting just as the S&P 500 is at a pivotal level that marks the difference between a risk-on and risk-off backdrop. 

Positioning argues for some volatility into the week’s end, potentially followed by a move higher if the expirations and CPI data are uneventful.