Is Volatility Underpriced

While equities have hit all-time highs driven by a parabolic semiconductor rally, extreme options skew and upcoming expirations suggest volatility is currently underpriced. Investors should watch May 15 OPEX and May 20 Nvidia earnings as primary windows for market repricing.

Key Takeaways

• 1.The market faces two major volatility catalysts: monthly OPEX on May 15 and Nvidia earnings on May 20.
• 2.Semiconductors have experienced a parabolic move (+36% in 6 weeks) driven by aggressive AI repositioning, with call options becoming extremely expensive.
• 3.Intraday SPX price action is increasingly influenced by 0DTE gamma flips, where systematic buying forces dealers to hedge, accelerating momentum.

Table of Contents

• Semiconductors: Parabolic Move, Growing Questions
• SPX: Intraday Squeeze Dynamics Despite Low Volatility
• Key Dates Ahead: Is Volatility Underpriced?

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