The options structure shows heavy call selling above spot and put selling below, indicating dealers are short gamma at current levels near 83. Today's 79.58-84.60 range represents 6.3% realized volatility, likely testing the limits of short straddle positioning. With spot between the 80 gamma strike below and 85 resistance wall above, elevated realized vol from geopolitical headlines may be pressuring implied vol higher as dealers hedge large short options exposures.
The options structure shows heavy call selling above spot and put selling below, indicating dealers are short gamma at current levels near 83. Today's 79.58-84.60 range represents 6.3% realized volatility, likely testing the limits of short straddle positioning. With spot between the 80 gamma strike below and 85 resistance wall above, elevated realized vol from geopolitical headlines may be pressuring implied vol higher as dealers hedge large short options exposures.