$EWZ has risen almost 30% since September, but the rally shows classic spot-up, vol-up instability, pushing the Bubble Risk Indicator to extreme levels (~0.8) according to the BofA derivatives team.

3-month implied volatility has soared to 32-34%, while realized volatility has remained at 28-29%.

The spread between implied and realized volatility is widening, signaling that the market is pricing in high risk ahead.

For those who want to participate without paying dearly for volatility, a calendar call spread seems attractive: long Mar-26 calls vs short Jul-26 further OTM calls.