Silver as an investment

Category Archives: S&P/ASX 200 VIX

‘Risk’ May Be Low But Uncertainty Over “Unknown Unknowns” Just Hit Record Highs

While the fear-tracking VIX has been languishing near record lows this year, a gauge of so-called ambiguity, meant to chronicle the degree of uncertainty investors have in the probabilities they use to make decisions, has been at all-time highs in recent months, indicating that there’s more fear built into the stock market than common measures […]

Muir: “People Are Going To Be Wiped Out” By Short-VIX ETFs

Back in August, we highlighted a story in the New York Times about a former manager at Target who decided to try day trading with $500,000 he had saved up. Over the following years, he turned that into $13 million by following one simple strategy: Shorting volatility every time it spiked. As MacroVoices host Erik […]

SocGen Says “Reduce Risk”: Hedge Funds Have Never Been This Short The VIX

Earlier this week, in the latest observations of broad market complacency, we pointed out that the VIX has remained heavily subdued in September – a month when volatility usually picks up – shrugging off rising geopolitical tension with North Korea, several destructive storms, and the Fed’s plan to normalize its balance sheet, while defying seasonal […]

How To Hedge A Near-Term Market Shock: Here Are The Best Trades

As we showed earlier today, last Thursday’s unexpected, historic VIX explosion, driven by a surge of geopolitical worries about North Korea, and subsequent collapse was remarkable in both how fast and furious it was both on the way up and then, on the way down.As Bank of America said “both the spike in vol and […]

Is Historically Low Volatility About To Surge?

Authored by Dmitri Speck via Acting-Man.com, Suspicion Asleep You have probably noticed it already: stock market volatility has recently all but disappeared. This raises an important question for every investor: Has the market established a permanent plateau of low volatility, or is the current period of low volatility just the calm before the storm?   […]

Morgan Stanley: “Well, That Escalated Quickly”

“Well, that escalated quickly.” That’s how Morgan Stanley’s chief cross-asset strategist Andrew Sheets summarizes events in the last week in his latest Sunday Start note, in which he describes how following one of the calmest stretches for stocks since the 1960s, an escalating war of words with North Korea hit late summer markets priced for […]

What’s Next For The VIX? RBC Explains

Yesterday, as the VIX was setting up for one of its biggest one day jumps in history, we reminded readers just how massive the short-vol overhang was courtesy of the following chart from JPMorgan showing that the net Vega on VIX-related ETFs was at an all time high, suggesting that the risk of a vol-buying […]

As VIX Explodes, A Painful Warning: The Vega Of VIX ETFs Has Never Been Higher

With the VIX soaring, from single digits yesterday to over 15, risk is suddenly breaking out above the crucial Kolanovic redline level… And Nasdaq is tumbling. … it is worth reminding readers just how coiled the short-vol sector is, something we described two weeks ago in “If The VIX Goes Bananas” This Is What It […]

Anticipating “VIX Shock”, Interactive Brokers Raises Volatility Margins

Even as the VIX has continued to plumb new all time lows, unable to rebound from the realm of single-digits where it has spent a record amount of time in 2017, warnings about a potential surge in the volatility index have been growing in recent weeks. Last week, in a note looking at what may […]

What If The Debt Ceiling Turns Ugly: How To Trade A Fall Spike In Volatility

As we first showed last week, while the equity market has remained completely oblivious to what the upcoming debt ceiling fight, which Morgan Stanley admitted over the weekend “worries us most” of all upcoming catalysts, the same can not be said of the T-Bill market, where 3M-6M yields have inverted the most on record on […]