$Direxion Daily Korea Bull 3x Shares ETF(KORU.US)$Direxion Daily Korea Bull 3x Shares ETF(KORU.US)

Yesterday was PPI day, and there's still a lot of data today. The index barely moved, and fear got a bit cheaper. The divergence below isn't something measured by this scale.

Recently there's been celebration, but the segment we want to buy hasn't dropped a single point:

Term 7/14 7/15 Δ

9 days 13.46 → 12.06 -1.40 ← collapsed

30 days 16.50 → 15.67 -0.83

3 months 19.30 → 18.91 -0.39

6 months 21.52 → 21.23 -0.29

1 year 23.28 → 23.13 -0.15 ← the segment you're buying, almost unchanged

The decline strictly decreases with term length. The short end fell 9.3 times more than the long end. Cboe official close independently recalculated.

VRP +10.57 volatility points, that's the extra price you pay just in case.

Broker track (IBKR, actual measurement of the landing library line) confirms the same direction:

SPY LEAPS(429 days) IV median −0.04, essentially unchanged.

The ones that rose the most actually saw their long-term IV increase: META +0.70 (underlying stock +3.07%), GOOGL +0.32, AAPL +0.23 (underlying stock +4.02%, closed at 327.50 hitting a new 52-week high).

In a nutshell: The market is cheering for the cooling of inflation right in front of it, but hasn't reduced the price of insurance a year from now by a single cent.

Storage is still deleveraging, so manage your positions well~