Dow, Small Caps Give Up “Mild” Omicron Gains, Traders Bet On VIX Spike


While Nasdaq continues to hold rebound gains, The Dow and Small Caps have erased all the weekend’s “Omicron’s not all that bad” gains since the US cash equity open…

Interestingly, there is some building anxiety under the hood as VIX calls expiring on Dec. 22 are among the most active options contracts in early Monday trading.

The deep-out-of-the-money strikes could signal some traders expect outsized volatility in the upcoming weeks as news emerges of the omicron variant (or debt ceiling). 

VIX is trading down a little this morning but well above the pre-Omicron levels of last week…

Bond yields are still higher but Treasuries are bid since the US cash equity market opened…



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