No More Risk: VIX Plunges Below 11 For The First Time In Years

Tyler Durden's picture

While the Fed's presidents are scratching their heads at the quandary that consolidated cross-asset volatility continues to tumble to never before seen levels, the NY Fed's trading desk, clearly rushing to get to the Hamptons, just sold enough VIX futs to push VIX not only 6% lower for the day, but to the lowest print since 2011. Next up: single digit VIX and the disappearance of all risk.


Golf clap, Kevin Henry. Golf clap.

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Quinvarius's picture

It is called hyperinflation.  Despite all the CB nonsense, we are going full on Zimbabwe. 

wee-weed up's picture

Cue the giant flushing sound in  3...  2...  1...

NoDebt's picture

Funny, I haven't heard the word "capitulation" lately.  Seems like it's about due to make an appearance.

maskone909's picture

holy vix batman this is NOT GOOD!  wow are these markets ever distorted

knukles's picture

VIX dropped because Obie stared down Vlad and was wearing an Humerikan flag lapel pin.
Hizz zal hokay!

Headbanger's picture

Fucked Up Beyond All Retarded!!

Argos's picture

Gold clap indeed.  Nice Freudian slip.

order66's picture

Finally, I can go long SPY and quit my job.

alien-IQ's picture

or just wait til monday after AAPL executes the 7:1 split and then watch all the monkeys jump in and buy with both hands and feet because "it will be SOOOOOO cheap" at that price.

just remember, once AAPL hits around $140, it will be a trillion dollar company...what can possibly go wrong?

alien-IQ's picture

actually, you'd have to go back to 2007 to see the VIX at these levels.

slaughterer's picture

VIX single digits was a short signal for Bob the Bear Janjuha

ebworthen's picture

Link to Jim Roger's blog from Bob Janjuha's blog:

"Just be very careful. They are desperate and getting more desperate. They meaning governments all over the world because they are out of money."

Of course, if $17 Trillion in debt isn't a problem, why would $34 Trillion be a problem?

Pyrrhus's picture

Perfect. I was looking for a good time to start investing.

NOTaREALmerican's picture

Buy some VIX at the bottom.    I always loved the smell of VIX. 

ebworthen's picture

"Now really is the best time to buy a home."

B.J. Worthy's picture

Our Fed

Who art in Manhattan

Yellen be thy name

Thy QE come

Thy print be done

By Ben as it is with Janet

Give us this day our daily 1.5 billion

And forgive us our savings

As we drown with the debtors

And lead us not into deflation

But deliver us from volatility


Barry McBear's picture

lol, made my day with this.  

Fix It Again Timmy's picture

When Alan Greenspan starts shitting solid gold bars, will the VIX go negative?...

delivered's picture

Negative interest rates in Euro-land so why not negative VIX in the land of Oz. And to think that after all of these years, decades, and centuries of economist trying to figure out how the economy actually works and how all economic problems are fixed, the answer was sooooooooooo simple. QE by monitizing ulimited amounts of soverign debt and dropping interest rates to basically zero. Why didn't we think of this decades ago to avoid all of those nasty economic corrections? Sure would have been alot easier. 

walküre's picture

Yes and free money for everyone in various forms, savings are penalized and nobody needs to work anymore and we're all living happily ever after.

Is this the greatest age or what? By the time I have grandkids, there will be unicorns shitting skittles - mark my words.

MFL8240's picture

I find this whole situation in the USA from the spying to the rigged markets to a leader who is an outright tyrant an absolute disgrace and think its time people wake up.

NOTaREALmerican's picture

"The tyrant" didn't rig the "markets" or start the spying.

Until people wake-up to who the enemy is, it'll just be more of the same.

...out of space's picture

every day is harder and harder

 to buy a dip

The Axe's picture

The VXX index has two functions   One --the favorite tool of the NY fed to create   number two....shit there is NO number two...

bigfoot_st's picture

2x that and you have UVXY - oh yeah

Hubbs's picture

Tyler, trying to pen articles for Zerohedge these days against this incredible market rocket shoot must be a struggle just like the one the  disciples encountered  trying to spread the word of Christianity.

I guess to do this, you must have, well, faith.

walküre's picture

You got it wrong. Christianity was a tool developed by the TPTB of their time to control the people. ZH authors are equivalent to the few anti-establishment (anti-Christian) sources who remained quiet or died for their revelations (no pun).

Hubbs's picture

Now that you mention it. I have to agree, but it was during the early days when the Christians were persecuted that I was referring to. Today of course, religion is big business and a means of control of the masses.


Like Pete Townsend sang in the song "Exsquisitely Bored " (off  the "All the Best Western Cowboys Have Chinese Eyes)   "Pray TV looks like Pay TV to me it's just a curse on the human race."

scubapro's picture

fascinating.   VXX is massively oversold too.   is there an ending diagonal in there?   which is the better risk return vxx to 34 calls or spy/iwm puts on a simple 2% reversal of the last few only needs to happen briefly to be worth it

MeelionDollerBogus's picture

depends how you look at it.

From what I can see ( , vxx, uvxy & hvu (tsx) all seem to be moving as expected with an inverse curvature to SPY / S&P500 (close but not precisely the same:$spx ,

Since the cheapest share price there is HVU & the largest inverse multiplier is -11x (uvxy, hvu) I gave up wasting my time doing the math on the others, just HVU.

219 = HVU 1/11 x SPY general trend. last I checked today's numbers were 3.34 hvu, 195.52 spy, 218.1748 for the number that equation churns out from a scatterplot analysis.

Given the pricing & expiry of the options I'd say NONE of the options is a wise choice. HVU shares don't expire & are very cheap.

You could go with VXX C 16AUG14 34.00 for $148 & USD 3.12 for HVU shares (which are native CAD currency) so that's equal to 47 shares' worth but they do not expire & the option does), there's VXX C 15JAN16 35.00 out as far as possible for $800 and at that rate you could get 256 shares of HVU in USD.

The later you get, the more decay will apply even if VIX stays as-is. The less time you get the more likely you are to lose it all. Look at the past YEAR of VIX, VXX, S&P500 and ask yourself what the probability landscape really looks like in the short-term.

It looks like all-time-fucking-higher-est-er S&P till it isn't.

HVU: doesn't expire. VXX shares don't either but being only -4x I see no reason to do that. UVXY is around 9.1x ( , price of HVU and moves at -11x as well.

Conclusion: paying more money for more risk and less return is usually not a good plan.

Seeing Red's picture

This will end well.

I Write Code's picture

Anyone have a chart VIX versus SP500?

Would like to see it over several timeframes.

I suppose I can gen one myself if I get ambitious.

MeelionDollerBogus's picture

well, there's this (easy)

And if you use you can get tickers VIX--X , SP-500 , download & make a scatterplot like this

1 9/11/2008 to 11/5/2008
2 11/5/2008 to 9/29/2010
3 9/29/2010 to 9/12/2012
4 9/12/2012 to 6/6/2014

Atomizer's picture

Obama needs to slap on a tampon and grab a 50 lb. barbell. Another engineered financial crisis is in the works.

Zuhalter's picture

Wonder who and when will go long VIX futures?

MeelionDollerBogus's picture

Why waste your time on VIX futures with margin risk when you can have UVXY, HVU, and I suppose VXX but it doesn't move -11x like the others, only -4x (inverse to market).

khakuda's picture

I'm not feeling enough bubble.  Needs more bubble.

Atomizer's picture

Will negative Central banking planning policy wet your appetite to debase USD too slice hairs in recouping your investment?

Suggest you watch FX market after hours. I call them nightlight robbers swapping out monies to fuck peter and pay Paul. We are not a Global Dow institute. Bullets will fly when the public figures out the banking scam. I don’t own a gun. Those AF guys will chuck one over the fence. If in Florida, I can be out in the Gulf of Mexico in 5 minutes. No joke.



ejmoosa's picture

When the intuitive becomes counterintuitive, you have a turning point.  



buzzsaw99's picture

vix is just the big banks trading on inside information as to what the fed will (or more importantly, won't) do.

Kreditanstalt's picture

Who are the suckers buying the other side of these deals??


EveningInAmerica's picture

At a certain point you have to wonder if the market going vertical is the end game. Seriously, why the f*** not? You know the trick of holding a chart upside-down to check your bias? Well now imagine holding a chart sideways. Vertical is the new up, modest gains are the new sideways, and sideways is the new down. You think I'm joking but the stock market has now been dead for five years and counting, and the central planners have given no indication that they prepare to allow reality to return. The final chapter is vertical and the epilogue is vertical in the other direction, but there will be no profiting from it. They'll simply hit the reset button.


So stop buying puts and shorting stocks and jump on the fantastic voyage. Seriously. Why would you do anything other than buy the direxion 3x bull ETF? Us ZHedgers think we're so enligthened, but we're two steps ahead, and when you're running too far in front of the crowd you look like a lunatic. The public is going to get in on this market again and push this puppy to the fucking moon. So board this mothership to hell and enjoy the ride, and cash out when the fucker looks like the chart of a 10.0 earthquake.