VIX remains above 20 this morning, but has followed the pattern of the last 3 weeks with VIX/vol bid into Friday due to weekend risk... and when WW3 does not actually occur, VIX/vol is sold in relief.
However, as SpotGamma highlights, there remains a fairly significant bid in IV as we head into Wednesday FOMC. Shown below is the current SPX term structure (black line) vs that of the previous FOMC (red line). This term structure reflects at-the-money IV's for each expiration, and as you can see current IV's are sharply higher than into Sep FOMC.
