Selling VIX Spikes (Explained In 1 Simple Chart)

Tyler Durden's picture

For the 5th time this year, VIX spiked and was instantly crushed in the last week...


Fears of global thermonuclear war appear to have been rapidly dismissed...


Despite speculative positioning in VIX having never been shorter...


So, apart from the jackboot of central bank money-printing on realized volatility, what is it that makes investors slam every vol ramp?

RCM Alternatives has a short and sweet suggestion...

We’ve talked in the past about Pascal’s Wager and simple decision matrices, and couldn’t help but think that today’s market rebound as the perfect example for why the VIX gets slammed off its spikes so frequently.


We all want to live!!

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BullyBearish's picture

kabuki designed to load up the shorts for the next leg up...or, at least to keep this $hitshow from imploding...

stitch-rock's picture

VIX, Ag, and Au seem to be
the calibration metrics of the normalcy bias...

Honey-Badger's picture

Told people to short at 15 last week, proceeded to be down voted and chastised for throwing out a bone.


Bill of Rights's picture

Wonder how much that London trader was in for?

Greenspazm's picture

No, he had 200 Buttcoins and lost the wallet.

SloMoe's picture

This week's margin cut from IB on vol shorts might spice things up, going into the weekend...

Fizzy Head's picture

Nice, simple affinity matrix chart.. the green clusters fill up the shorts pockets yet again... How do you BTFSD?

ParkAveFlasher's picture


(permanent orange afro)

coast1's picture

1.  there is no reality anymore..

2. if silver goes way high as some say, who do we sell it to?

3. remember when silver went to 48?  I have wondered about it, and why/how etc. and a lightbulb went off..It was an experiment to see what price would make it go parabolic, then manipulate the price at a minimum level so it doesnt hapen again?  Until it doesnt.

4. Why do womens shirts have buttons on the left side, and mens buttons on the right side?  I dnt get it.

Greenspazm's picture

4. So a right-handed man can get to her tits faster.

adr's picture

Actually you are partially correct. For the bourgeoisie, men still dressed themselves, but women were always dressed by servants. Buttons on the other side made it easier for the servants to dress their masters.

coast1's picture

maybe this is one instance when it was good to be a servant? 

DavidC's picture

Naughty but funny!


gregga777's picture

4. Button positions on shirts are just one of those eternal mysteries.

coast1's picture

good replies, but was focusing more on the silver question rather than the button positions :-) 

edit:  5.  will they spray chemtrails on august 21 eclipse day?  Should be interesting. 


hedgesofnight's picture


gregga777's picture

I grew up living on or close to United States Air Force Strategic Air Command bases. They were first strike targets during the Cold War. I quit worrying about thermonuclear war at least 5 decades ago. Just remember to bend over and kiss your ass goodbye if you get the warning. Otherwise you're dead before your brain gets the signals that you've been killed.

Seasmoke's picture

Just need a rotating boogie man to keep the ponzi fraud bubble going. 

George costanzas shrinkage's picture

Does anybody know tyler durdens real name is colin lokey yes you guessed it hes jewish to aint that something

Honest Sam's picture

Then he's a helluva guy to put up all the anti-zionism on the site. But, then again, he may not be inbred, but the offspring of a genuine First Amendment couple, or mother, who also spawned Ben Shapiro who realize words are just that and not one drop of blood has been shed by noting that for 40 years and counting that FED has been and is continuing to be run by Jews.  


Turin Turambar's picture

I'm not going to complain.  I made 5x on my UVXY 36P that I bought when UVXY was $42.  I closed them out yesterday.  That's the best 24 hour trade I've had in 2 years. :-D

chomu's picture

IB lets me sell naked calls on these long VIX etn turds. Sold 5 on Friday. Free $

TheRedScourge's picture

SVXY and UVXY are reasonable instruments to use to go long or short VIX in my experience.


I usually wait until there's a panic and then go long SVXY to be safe, essentially betting that VIX will lower again after every spike.

medium giraffe's picture

betting against teotwawki is a no brainer.