📝 See Growing Bid For Gamma Over The Past Week: UBS Strategy

Across the broader ETF market this week, there was significant buying of broad European and US thematic MT, and a lot of selling across biotech and growth ETEs over the last week. In Derivatives, the story has been the ongoing collapse in implied volatility, as the VIX is making one-year lows and SPX 3m implied vol has dropped 5v this year. Over the past week, however, there has been a growing bid for gamma as short-dated vols are trading on a 17-18v and next week is packed with macro catalysts. In singles, the standout thematic was the Wave of downside buying across consumer and consumer related names mainly In March/April/May paper. Retail a slight buyer this week with all single stock sectors better to buy, while ETEs were broadly sold during the rally. Thursday was first day this year in which the desk saw the trend of buying single stocks and selling of Equity ETFs reverse.- UBS Strategy