Friday’s close on the Cboe Volatility Index (VIX) caught my eye. It finished the week at 11.99, the first time that VIX closed with an 11 handle since November 2019 – just before that year’s Thanksgiving holiday. While US markets are closed for Memorial Day next Monday, I don’t believe that is playing an active role in the suppression of implied volatilities in the marketplace. Like most other market factors, it’s mostly about supply and demand.
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