There Has Never, Ever, Been This Many Trades Betting On VIX

Tyler Durden's picture

Not only are short volatility bets at their peak...


The number of VIX futures contracts outstanding has never been higher...

As Bloomberg notes, the gauge of U.S. stock turbulence has more than 660,000 contracts outstanding, surpassing every previous high.

While the measure is heading for a second day of gains, its slump this year has led to a surge of bets on where volatility will go.

All of which builds on the Morgan Stanley concerns at what the market will do if "VIX goes bananas."

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karenm's picture

The trap is set...

Gods's picture

Spider caught a fly

peopledontwanttruth's picture

The key word in the article is BETTING. The biggest casino ever is this market with its many many games.

Jason T's picture

they used to be called "bucket shops"

c2nnib2l's picture

I can smell WOAR

pound the vix's picture

The combined Feds of the world will never let us find out what would happen

BlindMonkey's picture

Popcorn. Stat.


What do you think this gets kicked off in Sept-Oct?

Bill of Rights's picture

I'll go with October have to rape the weak hands a few more times before we take off. The smart hand will be adding with these drivebyes...I'm overweight in LABD... adding every takedown.

THEBORG's picture

And now for the big theta burn!


HulkHogan's picture

HaHaHa.... I sold my short position on the VIX and bought the long 3x VIX ETF this morning. It's feeling moar and moar like it did for the run up of both Iraq wars to me.



StackShinyStuff's picture

I like where your head is at, but you are gonna get fucked on this one.

jcaz's picture

Silly boy....  And who do you think is shorting the VIX?  Who in the room has an INFINITE supply of money to continue to sell risk?  Where do you think much of that $20T has disappeared to?

JBilyj's picture

War drums will beat the S&P500 higher one last oomphrah, while simulatenously beating down gold - before the economy tanks. Buy puts on gold which will turn over by October-November and head back up...

opaopaopa's picture

it means nothing.

there've never been so many currency units.


order66's picture

Well, dip buyers are still sucking everything up in the 2460 area so new ATH's on deck.

sgorem's picture

record short vix / record stock prices. somethings gotta give folks. watch out for the distraction, and then the lights will go out for a nano second while the algos unleash the hounds. watch out beeeeeeeloooooooooow!

xrxs's picture

In this market, if VIX gets above 20, there's a good chance your counterparty is a pile of radioactive ash and bone.

flea's picture

More like 25 ... last break of 20 was Oct. 31, 2016 starting this latest craziness with SP500 up 19%. The last couple times it broke 25 was the Summer 2015 10% correction and the Jan. 2016 7% correction.

shizzledizzle's picture

So they are loaded up short, wouldn't it be better to say betting against the VIX. Betting "on" implies being long... At least that's how I would percieve it.

stocktivity's picture

Betting on could mean both long and short which would pretty much cancel each other out. A big nothing to see here.

Grandad Grumps's picture

You might as well bet on "Old Paint" to win in the 5th... or double down on that 00 before you spin the wheel.

It is just gambling, not investing and the house has rigged the game. It has 100% control of price.

C9H9N's picture

So if they have 100% control of the price what is left?
The C9H9N Team

taketheredpill's picture



Seek shelter.  Not everyone is short VIX.

strangeglove's picture

My Bet is we are following right behind Venezuela, entering the toilet bowl, as long as we can see them we have a few seconds moar. Once we loose sight of Venezuela the StAwks will explode higher until we are snuffed out in the vortex.

The end