The stock market’s volatility from late July through early October was extraordinarily low. For 50 straight days, the S&P 500 had not closed more than 0.8% in either direction, the longest such streak since 1968. Yet, on October 3, all that changed. The markets dropped hard… and the VIX suddenly spiked even harder.
Market fallen down 100+ points and once again there is a flip in open interest 7600CE and 7700CE writers taken advantage by building higher open interest. There is a confused state among the call and put writers and the overall picture of the market is moving in a sideways direction.