Fed Brought About 'Contrived Calm' in Equities, BNP's Boutle Says

The video discusses the current low volatility environment in the market, highlighting the potential gamma risk and the need for a catalyst to break the status quo. It examines the role of Theta in market analysis and the impact of the Federal Reserve on equity volatility and the VIX. The discussion suggests that while the Fed has suppressed volatility, risks of a spike in the VIX remain due to potential corporate earnings issues, exogenous shocks, or macroeconomic slowdowns.

What does the speaker mean by 'Theta' in the context of market analysis?

In what ways does the speaker suggest the market is currently in a 'contrived calm'?