It's amazing to think that just earlier this week VIX traded at 13 (and that a few weeks ago the S&P was testing all time highs): as of this moment the vol index is up nearly 100% since Tuesday (and all those 'sure thing' shorters of VXX are about to get some very unpleasant margin calls).
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But what would be far scarier is if whoever is suddenly offering a nickel for the VIX Sept 50 calls actually knows something.
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Because if he "does", that would suggest a market move 'Straight out of Lehman.'
Alternatively, those who are confident there is no risk of a plunge in the next few weeks should just hit the bid until the buyer pulls it: after all, what can possibly go wrong with collecting nickels, literally, in front of a central bank steamroller (one made, appropriately, by CAT) that is rapidly losing credibility.
