VIX Just Woke Up—And It Could Be Heading For 25

Vol wakes up

Volatility has finally started to respond. VIX is moving higher, implied correlation is picking up and VVIX remains firmly bid.

This is not panic. The term structure remains orderly, but the front end and downside tail are being repriced quickly. The gap between market deterioration and volatility pricing is beginning to close, but it has not closed yet.