FOMO Is Back, But Options Are Still Cheap
Convexity Is Cheap
Convexity remains cheap, but the surface is sending an interesting message. Outright SPX vol is still depressed, even as upside calls are increasingly bid relative to puts and downside protection has collapsed. That leaves attractive asymmetry on both sides: cheap outright vol for upside exposure, call spreads to monetize the relatively rich upside wing, and unusually cheap puts for protection.