The current pricing of equity volatility seems disconnected from the new market environment we're operating in. Traditional valuation models aren't fully capturing the structural shifts happening across assets—geopolitical tensions, policy shifts, and changing capital flows are creating conditions that suggest volatility has been underpriced.

When you look at historical volatility levels versus implied pricing, there's a notable gap. Market participants appear to be anchored to pre-2024 assumptions about stability. But the reality is more nuanced: we're seeing regime changes that historically precede meaningful repricing in derivative markets.

For traders monitoring cross-asset correlations, this mismatch between equity vol and macro uncertainty presents interesting dynamics. Whether traditional finance eventually reprices this, or continues to sleep on it, remains to be seen. Either way, the current setup doesn't reflect the actual risk environment.