From The Market Ear:
Complacency and calm, that is the way to describe the general sentiment in the markets right now and we are hearing more and more “volatility is dead” trades presented.
However, never ever forget that volatility is mean reverting. The actual VIX level at its natural floor, combined with the most extreme VIX call skew we have ever seen and several extreme technical positioning indicators, leads us to put on cheap VIX call spreads.
