Wall Street Is Now Afraid Of The Upside
The Fear Flip
The options market has undergone a remarkable reversal. Investors are no longer paying up for downside fear, they are chasing upside convexity instead. Put skew has collapsed, calls are bid and short-dated vol has been crushed, even as dealer positioning leaves room for moves in either direction to accelerate. With CPI/PPI ahead, summer liquidity thin and convexity suddenly cheap, this is a market where owning optionality is starting to make sense again.