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

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."

Comments

HulkHogan Wed, 08/09/2017 - 15:41 Permalink

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.  

JBilyj Wed, 08/09/2017 - 15:40 Permalink

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...

sgorem Wed, 08/09/2017 - 15:50 Permalink

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!

shizzledizzle Wed, 08/09/2017 - 15:56 Permalink

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.

Grandad Grumps Wed, 08/09/2017 - 16:40 Permalink

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.

strangeglove Wed, 08/09/2017 - 19:36 Permalink

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