From FT Alphaville:
Vol is low, not cheap
We’ve talked about how quiet the market is already.
Complacency is becoming an ever more common hit in our inboxes, and we assume not just because of herding instinct.
It’s also because, as we already quoted Citi:
“Current vols are a strong outlier, not just compared to 2016, but
against the average for all Augusts since 2000 (see charts 2, 3