The Silicon Valley Bank Collapse and How the Options Market Reacted

The VIX Jumps, Shocking Record Put Volumes and Real Tail Risk

With the SVB risks, we see a shift higher in options tail risk pricing, but not a surge in open interest at a macro level.

KRE, the Regional Bank ETF, saw record put volume, and there is record VIX call open interest.

XLF and JPM did not see a major increase in put interest.

Looking forward, the risk is that put options gain sharply in size and value into a very large March options expiration.

SpotGamma’s Comprehensive Analysis on the Silicon Valley Bank Collapse Risk

Watch below.