VIX Crashes To 12 Handle - Term Structure Steepest Since Dec 2014

Tyler Durden's picture

VIX crashed out of the gate this morning, plunging to 12.50 lows - the lowest since August 2015 (right before the market crashed).


The front-end of the 'greed' index has collapsed, driving the term-structure of 'fear' to its steepest since Dec 2014 as we suppose everyone and their pet rabbit is confident that The ECB will do something and The Fed won't.


What happened next?

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
pickatheweek's picture

The VIX is vexed by the viscous squid

El Oregonian's picture

Hurry, please someone. Call the VIX'er FIXER!

MillionDollarBonus_'s picture

Nobody is hedging anymore. All the bears who bought put options have been blowtorched, and aren't touching the options market with a ten foot pole. This has to be one of the lowest volatility bull markets in history! It really is testament to the effectiveness 21st century scientific economic management. I think they've really cracked it this time! It seems highly doubtful that we are going to see any significant correction in stock prices over the next couple of years. This market has made so many people rich, it's just crazy. It's almost embarrassing how much money equity investors are making, while ZHers keep get poorer. It almost makes you feel guilty.  

back to basics's picture

I always cringe when I see one of your troll posts because I know I have to scroll down about a half a page until I find something of value again.

herkomilchen's picture

At first, I didn't get it or like it either.  But over time I've come to appreciate the art of forming the completest possible caricature of the inanity we face down to the smallest detail.  If you've ever watched Stephen Colbert fully in character, that's what MDB is doing, only for our side.

It would be hilarious if mainstreamers would start reading his blog and leaving enthusiastic comments. 

bobsmith5's picture

I can totally see how you would think that herkomilchen, but he creates a whole website just to express these exact views and if you have ever gone there to read his crap, you got to know he takes these views seriously.  That makes me doubt that this is a put on of sarcasm and or satire.

Since MDB never responds to anyone's rebuttal or comments ever, you just can't get a lock on where this insane human being comes.  I would love to know one way or another, what, who, or whence commeth this demon called MDB.  The only good purpose he does serve here is to make passionate lovers of freedom, liberty, reason and sanity even more stalwart in their beliefs.

Hohum's picture



Now you're just being ridiculous.  You need a little more subtlety, maybe throw in "although global conditions are uncertain."

bada boom's picture

We de-vix'd some folks.

Dr. Engali's picture

Waiting for the VIX to do an what XOM did yesterday and trade in a 2c range forever.

Cautiously Pessimistic's picture

What happens next?  Well, DOW 18,450 of course!!!  I mean.... why not, right?

bada boom's picture



All aboard! ha ha ha ha ha ha ha!

Ay, ay, ay, ay, ay, ay, ay

Crazy, but that's how it goes

Kido's picture

Yellen has our back guys, stop panicking and keep buying MOAR

Restorative_Ally's picture

< This is the big one.

< Another mindfuck.

DaBard51's picture

got to make the vertical scales more legible, the red "zero" on Chart#1 ain't "zero", it's 12.6.

Naughty, naughty.

Being Free's picture

Dick With The VIX Party!

Cum as you are.

RSVP: 33 Liberty St. NY NY

Punch bowl provided.

g3h's picture

What the heck is volatility term structure?

herkomilchen's picture

Comparing current market volatility with market expectations of future volatility.  The ratio of expected future volatility over current volatility is high.

This means traders are betting the market will be relatively calm over the next 30 days but relatively volatile beyond that out to 60, 90, or 120 days.  And given the way people trade volatility, increased volatility translates to the market going lower.

herkomilchen's picture

If I had a nickle for every "What happens next?" chart and every "What could go wrong?" chart...

Bernoulli's picture

Check out the VIX now. WTF!

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Apr 20, 2016 9:31 AM

Wake me up when VIX hits single digits

bada boom's picture

Soon to have negative rates and a negative vix. Who would of thought that!

Storm Chaser's picture

I am skeptical about the long-held belief that when the VIX gets really low, it explodes up and the market crashes.  I think that is just the bears' wishful thinking...

Storm Chaser's picture

I am skeptical about the long-held belief that when the VIX gets really low, it explodes up and the market crashes.  I think that is just the bears' wishful thinking...