VIX Surges Above 50 For The First Time Since March 2009

For those traders who were desperately hoping that yesterday's VIX selloff would mercifully end in the overnight session, or that - as JPMorgan's Marko Kolanovic suggested some central bank would step in and bail you tout - we have some bad news: not only is the 116% surge in the VIX from yesterday accelerating, it is now up another 35%, above 50 - the highest level since March 2009 - extending its record surge as the vol eruption continues, and crushing the world's vol-sellers, assuring that all those who were collecting pennies in front of a steamroller, end up, well, fully steamrolled.

 

The VIX term structure has also flipped into massive backwardation...

Comments

katagorikal Lost in translation Tue, 02/06/2018 - 12:27 Permalink

When a finance guy says 'derivative' they just mean 'derived from',
or more simply 'depends upon in some way'. 

When a finance guy says 'volatility' they mean statistical 'standard deviation',
or 'square root of the 30-day variance', or more simply 'variation over a month'.

When a chemist says 'volatile' they mean

Liable to evaporate and leave you with nothing.

But the prize goes to the OED, which defines 'volatile' as (2):

Liable to change rapidly and unpredictably,
especially for the worse.

http://en.oxforddictionaries.com/definition/volatile

In reply to by Lost in translation

katagorikal Lost in translation Tue, 02/06/2018 - 13:02 Permalink

There are 3 types of volatility:

Implied volatility: what option prices say about expectations of future price variations.

Realized volatility: when you're short vol, but see a spike in VIX and realize you're fucked.

Impaled volatility: when you're short vol on margin, but see a spike in VIX, and realize you will be fucked from behind with a rather large splintered stake.

http://viralswim.com/wp-content/uploads/2016/05/impalment.jpg

In reply to by Lost in translation

youngman Tue, 02/06/2018 - 08:11 Permalink

Its going to be a wild ride today....but I bet it goes down.then up then down again..in big swings....funny they just took gold Negative....you would think all those bitcoin profits would run to gold....

Avichi Tue, 02/06/2018 - 09:33 Permalink

Classic FEAR Psychosis- Watch for President #TRUMP  drive another dragger into the FED manipulation and send FEAR- Today they NASA IS SENDING ANOTHER SECRET MILITARY SPACE MISSION. WARIII -T-100..99...98 "EMERGENCY WILL BE DECLARED" -MARTIAL LAWDemocRATS and the CABAL are going TO GO UNDERGROUND,OBAMA,CLINTON AND HER CRIME FAMILY ALONG WITH SOROS AND THE GANG ARE GOING UNDERGROUND. WE WILL HUNT YOU DOWN.

MILITARY INTELLIGENCE IN FULL CONTROL

 

THIS IS A WAR BETWEEN GOOD Vs. EVIL - PLANE AND SIMPLE

THESE BASTARDS HAVE TO BE PURGED AND ELIMINATED

 

GO #MAGA #TRUMP