Why isn't VIX higher?
But SPX has crashed - why isn't VIX higher?
"VIX should be much higher as SPX has crashed". Lot of people that have never traded volatility as an asset are having this view, but that remains a fallacy. Volatility is mean reverting over time. VIX has basically been stuck in a range this entire year. Yes, a wide range, but there is no trend. Currently we are in the middle of the range, hence our view of "VIX being not cheap enough to buy, nor expensive enough to short". The SPX is down around 20%, from all time highs, but VIX is trading at the same levels as when the SPX traded at around 4650/4700. Do not confuse direction with pace...VIX prices the latter.