"Something Snapped" - Stocks Decouple As VIX Call Volume Explodes

Tyler Durden's picture

As one veteran trader noted "something snapped" two days ago as VIX and US equities decoupled notably for the first time since the election. This morning VIX is surging once again (near 12) at the same time as US stocks are soaring.


Most notably, VIX call volume has exploded to its highest since September as chatter of long VIX call liquidations spread across trading desks.


Which seems to be confirmed by the crash in VIX Call protection costs...

Comment viewing options

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

Again, it's a casino!!!!

Only the casino owners will benefit.

Now, place your bets, but DO NOT call this "investing".

No Time for Fishing's picture

Unlike a Vegas casino you can make money in this one. As long as you know how the casino operates, are disciplined and not greedy their is alot of money that can be grabbed from the price swings. If you think you are investing you will get your a$$ handed to you but if you know it's a casino and know how they operate it you can profit nicely. 

Seasmoke's picture

If I had an ounce of silver every time I heard that since 1999. I would never have to look at the casino ever again. 

LawsofPhysics's picture

Sure, but I would argue that your odds are much better in Vegas.  In this casino, accounts can and are often confiscated pending legal action out of D.C.

In this casio, the odds are different depending who you are and who/what you know.

good luck.

spastic_colon's picture

this is the only way they can make room for more vix bashing; its complete BS but if they kept to letting the markets decide vix would be at 5 right now.

Dr. Richard Head's picture

What my dear old grandmama told me many years ago still holds true today, "It's not what you know in this life that matters, but WHO you know!'  Crony capitalism and all that jazz. 


moriarty's picture

Slight Mod FWIW;

Remember, it's not what you know, it's not even who you know, but it's what you know about who you know that counts.


Raffie's picture

The more people win the more they play and the bigger bets they take.

phatfawzi's picture

yeah but im feeling lucky, $100 on black. 




did i win?

RogerMud's picture

VIX down, market up
VIX up, market up

any questions?

NugginFuts's picture

Do you think anyone will figure out that the VIX is total bullshit now?

SlipStitchPass's picture

Who gave you the right to upgrade the VIX to total Bullshit?

Solio's picture

Get your money in (or out) the mock-it before it's too late!

syzygysus's picture

BUY THE REVERSE DIP!  We continue in bizarro world, which Kryptonite will reverse the effects?




FonestarReturns's picture

Stocks are a fool's game. Anyone with an ounce of brain matter invest in something that retains value (even more than gold) and that the government cannot touch: Bitcoin.

FonestarReturns's picture

By the way, Bitcoin is the wave of the future.

LawsofPhysics's picture

Well, all the primary dealer banks certainly agree with you.

Snaffew's picture

I love a virtual currency whose only value is backed by what the next person is willing to pay for it....what is bitcoin backed by as a currency?  Hope, dreams and a story---that's it.  Blockchain technology is available for anyone who wishes to start a virtual currency---bitcoin is like selling brownies---is it the best one or just another brownie stacked on a cafeteria table at the PTA meeting next to 20 other plates of brownies.

business as stusual's picture

Wow bright boy, you are describing any fucking fiat currency in the world!

No brain, no pain!

roadhazard's picture

VIX cried wolf to often and now no one believes.

Bam_Man's picture

I guess it's not easy for us to appreciate how difficult it is for (((them))) to make these fake "markets" look semi-authentic - most of the time.

onthedeschutes's picture

Nothing snapped.  It was just Yellen changing the toner cartridge.

Fake Trump's picture

A flash crash any moment. 

shizzledizzle's picture

Love to see silver rebound from a merciless hammering :) As for the VIX, Pavlov's dog is deaf.

Erwin643's picture

Don't get your hopes up about silver: It's hitting its 10-month and 200-week Moving Averages, simultaneously. The 50-Month MA is not far above.

Silver is in a long-term downtrend.


Snaffew's picture

VXX is at its' highs as the market pops---this is strange, but I've seen it before.  the VXx can rally from an oversold level during a market rally.

BlueHorseShoeLovesDT's picture

True but it looks ripe for a smack

SlipStitchPass's picture

What has 2 thumbs and has lost 10K in the TVIX in 2 weeks?........THIS GUY.

Erwin643's picture

All I noticed was that RSI on SVXY was hitting the same record "overbought" level as during the previous month, before a small correction down to the 10 DMA occured. Placed a Buy to Cover with Market on Close order on my short of UVXY, on 14 FEB. 

My get-out timing could not have been more perfect.