June volatility spasm could test the nine-week stock rally, SpotGamma warns

SpotGamma warns that June’s catalyst-packed calendar could trigger a volatility spasm and test the nine-week stock rally: May CPI data due June 10 amid energy-cost pressures, SpaceX’s June 12 IPO with potential Russell index inclusion, and a busy mid-June schedule capped by a Fed decision and quadruple witching options expiry. The note points to stretched bullish positioning in AI names and hedging in IWM puts and SPY protection, plus notable XSP put-diagonal activity as traders seek downside protection. If upside demand eases and calls unwind, a sharper pullback could follow even as the market sits near record highs.