1/x I agree with this whole heartedly. Today’s & Mon’s close...The thinking goes like this: the vol curve is so inverted that there are dealers short 11/4 puts, as these are the highest Vol, & long some cheaper Vol somewhere behind. The backwardation is so steep that as long as https://twitter.com/trendfollower83/status/1322210685091115009

2/x a real meaningful drop soon, say below 3100. Dealers are going to quickly become longer cheaper vol & shorter delta... & then they will, in turn, be forced to buy back deltas & sell vol. this would stabilize the market and lower vols & lead to a positive feedback loop of

3/3 risk on flows from the usual suspects of trend follow, risk parity, vol target. This window is critical. Textbook Vanna/Charm flows & they’re @ their most extreme.Of course, the opposite side of this is @ this very moment gamma risks are @ their peak & the market most fragile