Funding Stress Is Easing as SOFR Cools — and Options Positioning Signals a Volatility Reset

$VIX $ORCL $NLR $LITE

Hello Traders,

Over the past couple of sessions, we’ve started to see a few quiet but important shifts developing beneath the market surface. Nothing dramatic — but enough to suggest that conditions may be slowly improving after the recent funding stress and elevated volatility. These early signals often don’t make headlines, yet they tend to show up in liquidity metrics and options positioning before they appear in price action.

Today we’ll take a quick look at what’s changing, why it matters for short-term stability, and how institutional positioning is adjusting as these pressures ease.

Let’s dive in.