VIX Curve Inverts Again As Futures Market Interest Collapses

Just two weeks ago, everything was awesome: jobs data was perfectly 'goldilocks', stocks surged, banks loved it, and VIX flash-crashed lower - normalizing the term structure. Today... things are very different.

The market has given up on Goldilocks...

Bank stocks have collapsed since 'Goldilocks'...

And the VIX term structure has once again inverted, echoing the worst of the February Fiasco...

 

And while 'normally' a surging VIX and inverted curve would prompt a considerable pickup in VIX trading interest, the pattern since the implosion of the 'short-vol' trade has been a one-way street as while the VIX is heading for its biggest quarterly surge since 2011, the popularity of contracts tied to it is waning.

As Bloomberg notes, the number of Cboe Volatility Index futures outstanding has slumped from a record last month, with Wednesday’s expiration pushing it to its lowest reading since November 2016.

Does that explain the lack of dip-buyers in stocks?

Comments

enf83 Fri, 03/23/2018 - 13:28 Permalink

In the news

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Couple Commits Suicide After Their Parents Tried To Separate them:http://enternations.com/thread/548/couple-commits-after-parents-separate

Man dies while trying to steal from a transformer:http://enternations.com/thread/549/man-dies-trying-steal-transformer

 

Airport staff member get punished for being too handsome: http://enternations.com/thread/528/airport-staff-member-punished-handsome

Girlfriend saves her lover’s life by cutting his throat: http://enternations.com/thread/522/girlfriend-saves-lover-cutting-throat

Woman dies after husband uses mortar bomb as sex toy:http://enternations.com/thread/499/woman-dies-after-husband-mortar

Father Joins Son To Rape His Young Daughter:http://enternations.com/thread/445/father-joins-son-young-daughter

 

Haus-Targaryen Dragon HAwk Fri, 03/23/2018 - 13:45 Permalink

We really need better comment admin. 

These people should be getting permabanned after their first post. 

There are a good dozen of us with 5+ years of ZH comment activity who have been posting here daily. Not sure why half-dozen of us don't get some comment section admin power to start clamping down on the spam. 

I'm sure most of us would do it for free. 

In reply to by Dragon HAwk