Options Expiration Could Unleash S&P 500 Volatility

Monthly options expiration (Aug 21) is approaching with a large gamma unwind expected. Low implied vol (VIX 14.45) contrasts with elevated realized vol in single stocks. Low implied correlations ahead of OpEx add to the risk of a volatility spike. The pinning effect may break, leading to increased volatility. This is a key near-term catalyst alongside NVDA earnings and Jackson Hole.