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Did Kevin Henry Just Break The "Sell VIX" Button?

Submitted by Tyler Durden on 10/30/2013 11:39 -0400

UPDATE: VIX just spiked again to 19.53%

While we have already heard this morning of numerous Nasdaq options markets prices being crossed, the latest SNAFU involves nothing less than that ultimate lever of market performance - the VIX - which just flash-smashed:

*VIX EARLIER SURGED TO 21.26 IN SINGLE TRADE THAT WAS ERASED
*VIX SURGES TO 15.27 BEFORE IMMEDIATELY DROPPING TO 14.17

It would appear that fist-stomping the "Sell VIX" button too many times on the Fed's Bloomberg terminal keyboard temporarily exposed reality. Or did the Fed realse its statement prematurely once again?

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Wed, 10/30/2013 - 11:42 | 4104883 FOC 1183

Ask him: khenry24@bloomberg.net, 212.720.2777

Wed, 10/30/2013 - 13:07 | 4105250 kralizec

Must be what happens when shit interrupts your online porn...

Wed, 10/30/2013 - 11:45 | 4104899 mademesmile

Gotta love the "undo" button!

Wed, 10/30/2013 - 11:59 | 4104952 Groundhog Day

A GLITCH in the Matrix

Wed, 10/30/2013 - 12:34 | 4105114 Wahooo

A black cat went past us, and then another that looked just like it.

- Neo

Wed, 10/30/2013 - 12:54 | 4105197 asteroids

Old Yeller is at the helm now. She'll make mistakes until she figures out how to drive the damn thing.

Wed, 10/30/2013 - 13:03 | 4105229 lotusblue

My platform showing VIX high of 21.26 why my UVXY didn't reflect this for selling is Clapper and Alexander SKIMMING my profit !

Wed, 10/30/2013 - 11:45 | 4104901 Cursive

Rule #1: If single trade creates flash-crash in VIX (especially at market close), then it's acceptable.

Rule #2: If single trade creates flash-smash in VIX, then delete it.

Wed, 10/30/2013 - 11:53 | 4104915 knukles

How come the "retrieve that fucking e-mail you didn't want to send" button in Windows never works?

Must be all that Gates Eugenics shit in the water.

Kevin, honey! Don't forget your Kool-Aide!

Oh, more apropos to the topic, I think it's just the whole Goddamned thing's broken.... the pathway led by confusion boats, mutiny form stern to bow...

Wed, 10/30/2013 - 11:47 | 4104903 Hongcha

What was the size of the trade?

Wed, 10/30/2013 - 11:54 | 4104932 knukles

If it lost GS money, then it was small and will be cancelled.
If it made bundles, oodles and oodles, gobs and gobs for GS, then it was real and the counter-parties get to suck the hairy end of Lloyd's lollipop.

Wed, 10/30/2013 - 12:01 | 4104957 gmrpeabody

"What was the size of the trade?"

From the looks of it ..., I'd say about a 38 C.

Wed, 10/30/2013 - 11:49 | 4104911 Charles Nelson ...

this poor freaking bastard...

Wed, 10/30/2013 - 11:51 | 4104916 buzzsaw99

if it was erased that means it was the squid

Wed, 10/30/2013 - 12:31 | 4105102 FuzzyDunlop21

I know this market is broke 6 ways to Sunday but this seems fishy even beyond the level of manipulation that usually occurs daily. And on a Fed meeting day? Somethings up

Wed, 10/30/2013 - 11:53 | 4104929 101 years and c...

its just so funny at this point. so many people will lose everything when tptb deem it the right time to release the black swan.

Wed, 10/30/2013 - 11:56 | 4104937 knukles

but but but, wasn't he elected in 2008?

Wed, 10/30/2013 - 11:58 | 4104947 IndyPat

That was the Black Pawn....

Wed, 10/30/2013 - 12:07 | 4104985 Hedgetard55

The half black spawn.

Wed, 10/30/2013 - 11:54 | 4104930 IndyPat

Just checking headspace...

Wed, 10/30/2013 - 11:55 | 4104935 Its Only Rock N Roll

ghost in the machine...will be prinitng there soon then

Wed, 10/30/2013 - 11:59 | 4104950 hugovanderbubble

VDAX....GOING TO EXPLODE

Wed, 10/30/2013 - 12:01 | 4104958 rubearish10

SKEW!

Wed, 10/30/2013 - 12:03 | 4104964 firstdivision

This is a buy VXX signal.

Wed, 10/30/2013 - 14:07 | 4105538 MeelionDollerBogus

It's not. Keep in mind vxx is about to do a 4:1 reverse split.
This gives play for a price drop so options (vxx puts) can still work (for now they are g arbage).
Be suspicious.
Scatterplot vxx to spy & dia before entering a trade.

Wed, 10/30/2013 - 12:06 | 4104977 Seasmoke

In the near future. Kevin will be uttering the words, I was just following orders.

Wed, 10/30/2013 - 12:24 | 4105037 vonMises

Would you please stop talking as the VIX as a tradebale instrument?

VIX is a "continuously" computed index level whose price derives from actual bid offers on SPX listed options.

From this observation derives the following remarks: there is no trade associated to a VIX print. A misprint is 100% of the time the consequence of a miscalculation (rare) or the fact that a market maker on SPX options has started (stopped) contributing bids on a wide range of SPX options (mostly on the downside as the VIX is more sensitive to it)

For once and for all : you cannot BUY or SELL the VIX. What you can do is buy or sell SPX Options in order to affect direcly the VIX price or, indirectly, buy or sell VIX Futures. The sheer size and liquidity of both markets is ruling out any shor term market distortion as the one you are pointing out here. Not to say that the markets are not influenced by excess liquidity and other intervention in the markets (by the Fed and other POMO agents) but the misprint presented here IS NOT a correct illustration of that...

Wed, 10/30/2013 - 12:49 | 4105171 Robsabi

Good point in general. But you can buy options directly on the VIX, if I am correct. I always though this was a bad idea, as this surely must make the VIX subject directly to buying and selling forces (and the fear and greed that create them) diminishing its role as an accurate reflection of activity in SPX listed options.

Wed, 10/30/2013 - 12:21 | 4105039 thetruthseeker

His name is Kevin Henry. His name is Kevin Henry. His name is Kevin Henry.

Wed, 10/30/2013 - 12:23 | 4105048 CHX

You just need to know where the fiat is ultimately going, and get positioned accordingly, and enjoy the shyte show called "markets" doing their (new normal) thing. Good day.

Wed, 10/30/2013 - 12:29 | 4105085 STG5IVE