Although the VIX fear index remains at only 15.8, it doesn't mean the market is without caution. The PX bearish skew rose from the 36th percentile a week ago to the 73rd percentile; three of the four largest VIX trades this year occurred last week, each involving over 120,000 call options with a notional premium of approximately $12 million and strike prices concentrated between 28 and 34. Investors are not selling off stocks across the board, but rather focusing on buying tail insurance to hedge against the risks of a market crash caused by inflation, oil prices, and the FOMC.
