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VIX SSDD WTF LMAO
Following yesterday's epic, grotesquely illegal smashing the close in the VIX, we decided to have some fun 10 minutes before the close, and, in jest, summoned the VIX Smash Hulk. To our complete lack of surprise, he appeared.
At 3:52 pm we tweeted...
paging @VIXsmashHulk
— zerohedge (@zerohedge) December 10, 2013
... and sure enough he came, right on time.
Finding the tell-tale trails of this slam in the snythetically created (and not specifically traded) spot VIX index is not easy but the 1800 SPX Puts saw implied vol hammered into the close suggesting a lot more willingness to sell at any price than buy...
BUT!.... for the second day in a row, stocks would not play ball (and JPY carry did not manage to ignite momentum either)
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Fuck you Bitcoins
how does one smash the vix? seems like you would have to sell a lot of spx options on the close.
CBOE Volatility Index (VIX) Futures
... aka leverage upon leverage upon leverage
i thought the vix was derived directly from the spx options weighted. farther out being not as important. Its looks like the /vxz3 and /vxf4 where bought on the close? Also looking at the spx option time/sales doesnt seem like any big orders went through
In the spot you have to look at the entire vol plane, in this case 1800 puts seemed wobbly.
vix caculates the iv of a weighted strip of spx options iv. it stop caculating when it finds two zero bids in a row. Since its almost expiration they might be dropping the bid on a bunch of otm puts.
or buy a bunch of calls.
wouldnt buying calls raise the vix price?
$VIX = option market sentiment - bearish sentiment relative to bullish sentiment as reflected by spreads and variances in the two premiums of each out of the money put and call option at a particular strike. As per invetopedia, The VIX is calculated using a "formula to derive expected volatility by averaging the weighted prices of out-of-the-money puts and calls”. Put simply, its really a ratio, and not unlike a simple put/call ratio. High VIX readings implies strong bearish sentiment which is reflected in the price of puts - bullish sentiment as reflected in the price of calls. The higher the bullish sentiment - call buying (and by implication writing), the lower the $VIX. The higher the bearish sentiment - put buying, the higher the $VIX. I have always understood the VIX as a put call ratio on option prices. So, with reference to my earlier assertion of what might smash down the VIX - call buying would do it, but not necessarily the only thing that would do it.
Modus Operandi for 5 years and counting
Fuck you Yellen...
Please refrain from making this statement. When we say "Fuck you Bernanke", it is obviously tongue in cheeck and we are using the term "fuck" in it's purely derogatory form. When you say "Fuck you Yellen" iI can never bve certain you don't mean it in it's literal sense and that is the sort of imagery I can do without.
Hey, maybe you're into some pretty niche websites so maybe I should just mind my own business.
like plotting the price of bitcoin vs litecoin, turd vs turd
Don't make me angry! You wouldn't like me when I'm angry.
Like minds think alike.
" You Don't Want To See Me Angry "
You should see the blocks they put on the offer on VXX even after the close. But the funny thing is that it does not seem to be working anymore. They have been doing that for months
PS Tyler please look at my other post in previous thread about ads ruining my browsing experience on ZH. PLEASE HELP
Solution Provided.
http://www.maxa-tools.com/cookie.php
Time for Hulk to get bigger hammer!
Hmmm...paging WB7 for a visualization of VIX Smash Hulk. I'm thinking might be a faint resemblance to The Bernank or Mr. Yellen!?
Oddly I thought banging the close was illegal.
EDIT: Sorry I forgot it's not illegal for those who are allowed to be above the law.
Banging the close seems ok. Only banging hookers is frowned upon by the mob i mean gobernment
Also we have major USD sells going on, now selling under the FEDs 80, this is a set up for a santa rally.
us$ index does not include cnv. this is how cny looks like last 24 hours, http://forex.tradingcharts.com/chart/US%20Dollar_Chinese%20Yuan%20Renmin...
Whomever it is they must enjoy losing money, or they have some derivatives that will be seriously in the money should VIX close Dec below 13.