Cboe's Macro Volatility Digest reports a widespread decline in cross-asset implied volatility following the easing of US-Iran geopolitical tensions. The market is currently focused on the upcoming FOMC meeting and new product launches for XSP-based options.
Key Takeaways
- 1.Implied volatilities across major asset classes have declined following the reduction of geopolitical risk premia tied to the US-Iranian peace agreement and the opening of the Strait of Hormuz.
- 2.The Fed is widely expected to keep rates unchanged at the upcoming FOMC meeting, with markets pricing a 99.9% probability of a pause.
- 3.Cboe is launching new defined-outcome products, specifically XSP Binary Options and Quoted $1 XSP Vertical Spreads, starting June 15, 2026.
Table of Contents
- WEEKLY MARKET COMMENTARY
- Cross-Asset Volatility Monitor
- Macro Equity Volatility
- VIX Index Volatility
- US Index Volatility
- Cboe Derivatives Market Intelligence
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Authors
Ed Tom
Securities
SPXVIXXSP
Themes
Geopolitical De-escalationVolatility NormalizationMonetary Policy Transition
Regions
Middle EastUnited StatesIran