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Hedge Funds Get Long Volatility

CrownThomas's picture




 

Hedge Funds are apparently dusting off their notes on how to hedge, and getting long volatility... 

As the Fed stays out of the market (perhaps not for much longer), and people wake up to the fact that the economy (both US and China) isn't fundamentally strong, we're now finally seeing some volatility in the market (gasp). As Bloomberg points out below, VIX futures are now a popular buy.

 

 

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Wed, 09/09/2015 - 03:39 | 6525662 Tapeworm
Tapeworm's picture

Who's the counterparty to the idiot hedge funds' being long VOL? It smells like AIG or some decrepit POS.

Tue, 09/08/2015 - 11:28 | 6522550 DOT
DOT's picture

  Never let a crisis go to waste... when those (hot or cold) winds start to blow it is time to remove the trend and bet on the magnitude. Fed move? Check. China problem? oh, yeah that too. Snowstorms in winter? You bet ! Just wait for the BLS to complete the play. Greece, Syria, (the)Ukraine, pipelines and pogram; all sorts of shit to keep the action going.

Change is here.

Change is coming.

Bet on it. 

 

 

 

(as the above could be construed as specific trading advice add  /s )

 

Wed, 09/09/2015 - 01:38 | 6525557 Reichstag Fire Dept.
Reichstag Fire Dept.'s picture

Is there a VIX double long/double short ETF for the muppets??!

Tue, 09/08/2015 - 11:10 | 6522505 KnuckleDragger-X
KnuckleDragger-X's picture

Hedge funds, That's what they call themselves, but maybe 10% are real hedges and the rest are sucking up big commisions playing "buy the dip".......

Tue, 09/08/2015 - 10:14 | 6522312 pound the vix
pound the vix's picture

One of these days pounding the VIX will fail, but for 6 years wall street has made a fortune doing it on every VIX spike and Stock market dip.

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