IWM 124.39+1.56 (+1.3% iShares Russell 2000 Index
Traders are pricing in a larger-than-average implied volatility premium to buy downside puts relative to upside calls. Currently, the downside puts are trading at a +43.4% premium to upside calls, but the 52-week average is +38.1%. This suggests that traders believe there is more short-term risk to the downside than to the upside, and they are paying higher premiums to guard against that risk.
Traders are pricing in a larger-than-average implied volatility premium to buy downside puts relative to upside calls. Currently, the downside puts are trading at a +43.4% premium to upside calls, but the 52-week average is +38.1%. This suggests that traders believe there is more short-term risk to the downside than to the upside, and they are paying higher premiums to guard against that risk.
