Stocks aren't the only thing that have gone quiet. Anticipated and actual volatility in many heavily traded commodities have also plunged over the course of this year. And this "all quiet on the Western front" market is forcing traders to rethink the way they turn profits.
"It seems that some folks have already packed up the family truckster, applied the SPF 30 and headed to the beach," said Jeff Kilburg of KKM Financial. "This is reinforced by light volumes, and as traders are viewing the ECB carrying the QE torch being handed off by the Fed," after the European Central Bank announced a raft of stimulative measures, "complacency has certainly found some new company."
The CBOE Volatility Index touched the lowest level since 2007 this month, but it's not just S&P 500 volatility that traders are refusing to pay for. The indexes measuring implied volatility of gold and oil have also plunged this year.
And this doesn't just reflect complacency. These plunges in implied volatility come as realized volatility has collapsed. Stocks, gold and crude oil have all done precious little over the past few months—Thursday's macro-related oil spike aside.
"Past is prologue, and the last 30 days have been really quiet. Since it's summer, and most traders are trying to take a little time off, there's no reason to think things are going to magically get volatile now," pointed out Scott Nations, a longtime options trader who is currently the chief investment officer of NationsShares.
This has left traders, who generally look to capitalize off of volatility, searching for new strategies.
"Volatility is DEAD. And as a trader we live for volatility, so right here and now, we must get creative," wrote Rich Ilczyszyn, senior commodities broker at Chicago-based iiTrader, to CNBC.com. "What I do is write premium on current positions or spread. For instance, if I am long WTI [crude oil], I will sell calls against the position to bring in income until the vol comes back."