What Does VIX Know That Stocks Don't?

Tyler Durden's picture


Even before Fed's Williams poured cold water on un-taper hopes, it seems new highs in US stocks were being aggressively protected in the options markets. Today the divergence between an exuberant stock market and a defensive options market (VIX) is getting extreme... With the S&P and Russell having achieved their technical goal of 'unchanged' year-to-date, it appears the BTFATH'ers have left the building for a moment.



Since the US open, USDJPY and US stocks have seen their 'beta' explode and somewhat decouple...

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Wed, 02/19/2014 - 13:51 | 4453240 NOTW777
NOTW777's picture

trees dont grow to the skies even in a ponzi cloud

Wed, 02/19/2014 - 14:10 | 4453339 Headbanger
Headbanger's picture

The VIX "knows" WE'RE FUCKED!

Wed, 02/19/2014 - 14:19 | 4453383 jbvtme
jbvtme's picture

looks like the vix and the usd are tracking one another since early feb

Wed, 02/19/2014 - 15:31 | 4453768 BoNeSxxx
BoNeSxxx's picture

Whoever sold those $1.8 million in February VIX options at $22 is looking pretty smart right about now...

Wed, 02/19/2014 - 13:52 | 4453243 Dr. Engali
Dr. Engali's picture

Protection .... Lol. When this thing vaporizes there will be no protection, and there will be no escape.

Wed, 02/19/2014 - 13:55 | 4453261 financialrealist
financialrealist's picture

just wish it would vaporize soon...its been a slow motion train wreck for years.

Wed, 02/19/2014 - 13:55 | 4453254 camaro68ss
camaro68ss's picture

I think the market only goes green when a banker dies.

Wed, 02/19/2014 - 14:00 | 4453282 LawsofPhysics
LawsofPhysics's picture


Wed, 02/19/2014 - 13:56 | 4453263 Glass Seagull
Glass Seagull's picture



Vix knows S&P500 cash just closed the 1/23/14 gap lower.  Time to roll over.

Wed, 02/19/2014 - 13:59 | 4453279 LawsofPhysics
LawsofPhysics's picture

LOL!  In a fully manipulated, centrally-planned, "market", the answer is nothing...

Wed, 02/19/2014 - 14:04 | 4453310 The worst trader
The worst trader's picture

It knows nothing, fell into that rap tooooooooooooooo many times. Nothing matters but the Fed.

Wed, 02/19/2014 - 14:47 | 4453496 walküre
walküre's picture

Did you mature from Robotrader to Robotrader's Mom to "the worst trader" ? The avatar gives it away.

Wed, 02/19/2014 - 14:28 | 4453420 10mm
10mm's picture

VIX knows what Soros knows.

Wed, 02/19/2014 - 15:17 | 4453658 EARLPEARL
EARLPEARL's picture

the only thing that could give the soros trade the kiss of death is if GARTMIN agrees with him...last i heard gartmin is bullish..to me that means crash in next 5 days.

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