Published Aug 18, 2026, 11:33 AM ET · Updated 3 months ago · 1 source

Implied volatility normalization between NDX and SPY creates opportunities in individual stocks

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Original Report

The implied volatility spread between the Nasdaq 100 (NDX) and S&P 500 (SPY) has normalized rapidly over the past three months, leading to compressed daily trading ranges for indices. However, individual stock implied volatility, such as AMD's 75 IVX around its earnings 10 days prior, remained high, creating opportunities for selling strangles.