Selling VIX Spikes (Explained In 1 Simple Chart)

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.

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