VIX Speculators Have Never Been 'Longer'

Shortly after the collapse of the 'short-vol' trade in February, VIX speculators were ripped into an unprecedented long position (i.e. betting on higher vol) and while VIX has fallen from its peak chaos levels, speculators have added to their 'rising risk' bets.

It appears 'Buy the dip' has reached the volatility markets...

As Bloomberg notes, hedge funds have increased their wagers for turbulence in the equity market for a fourth straight week, taking the number of net-long positions on Cboe Volatility Index futures to a fresh record.

After being short the contracts for almost two years, large speculators reversed their bets in February amid a surge in the VIX, data from the Commodity Futures Trading Commission show.

The VIX term structure has 'normalized' in the last week, as stocks bounced and spot VIX dropped back below 17.5...

Comments

SlipStitchPass Mon, 04/16/2018 - 10:16 Permalink

I thought it was going to be the end of the world if the VIX hit 20 and stayed there for 3 days? What happened to the Trillions in lost money and the end of the world?

backwaterdogs SlipStitchPass Mon, 04/16/2018 - 10:57 Permalink

You've been in zh too long...

- wind blows == end of times

- trump wins == end of time

- fed raises rate == market crash and end of times

- trump mbs Syria== guaranteed Russian response, ww3 and end of times.

 

Reality is fed will raise rate, trump can bomb whoever the fuck he wants, Russia isn't going to do much about it, the world will go on, stocks will go up and down, fed will print more dollars and the world will continue to bitch about it, but soak every last one of them.

In reply to by SlipStitchPass