Greeks.live: With the PPI and CPI being released one after another, market volatility expectations have significantly decreased

ChainCatcher message, Greeks.live macro observer Adam posted on social media that, with the PPI and CPI being released one after another, the market's volatility expectations have significantly decreased, leading to a noticeable drop in implied volatility (IV) across major maturities.

Short-term IV has dropped by over 20% this week, while medium to long-term IV has also decreased by about 5%. Such a decline in implied volatility (IV) in the options market is relatively rare, allowing institutional sellers to recoup a lot of profits during this round of decline, compensating for the hedging losses incurred from significant volatility over the past month. The term structure has now returned to a stable configuration of high long-term and low short-term, and the market may consolidate for a period of time.