April Joyner of Reuters and I caught up to discuss the volatility landscape after the election.

Implied volatility has been coming down and contango, the relationship between the front month at-the-money implied vols vs the next months out, is getting back to normal. Normal for contango is positive when the front IVs are below the back IVs. For a couple of weeks, contango went negative.

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April's article can be found HERE

 

More reading on contango...

Since I was quoted using surfer speak, here's a video for you:

HubSpot Video