Volatility Compresses as VIX Falls to 14.51 and Options Traders Turn Bullish
Market volatility compressed sharply on Friday as traders shed hedging positions. The CBOE Volatility Index dropped 4.60% to 14.51, well below its long-term average near 20.
The CBOE Total Put/Call Ratio followed suit, falling to 0.73. That reading signals a clear shift toward call-side positioning and reduced demand for downside protection.
Key Takeaways
VIX fell 4.60% to 14.51, indicating reduced near-term hedging demand CBOE Total Put/Call Ratio dropped to 0.73, a bullish zone below 0.85 10-year Treasury yield rose 0.17% to 4.67%, reflecting modest reflation expectations Compressed volatility leaves markets vulnerable to surprise shocks The combination of a falling VIX and low put/call ratio…
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