Traders the market priced out the weekend today, vol fell and we moved up the curve. These are the three factors that led to the huge drop in the VIX today.
If traders take the time to look at the movement in the VIX today I think something becomes apparent:
[caption id="attachment_2357" align="alignnone" width="150" caption="Notice the range"]
Today has certainly been a weird one. With the market down almost 2% on the open IV was completely unchanged. On top of this skew was falling. Any increase in the VIX this morning was from movement
VolTraderBlog is the blog of one of my star students. He asked if I would be interested in having him write a few guest posts. I quickly said yes because anytime I can get an intelligent trader to w
I have to say this was one of the craziest weeks I have witnessed as a trader. Certainly this is the craziest since 2008.
The SPX drop 86 points at one point dropping over 7%.
I do not have time to fully address what happened today. Here are a few quick thoughts:
Check it out here: SFO MAG
Yesterday we went over the similarities between the 2008 and the current financial crisis. I think there were a decent number of similarities.
Since the beginning of the Euro Zone crisis I have heard experts up and down try to make parallels between the end of 2008 and what is currently happening in the market place.
Right now it is a great day to be long gamma. It is also a great time to be short gamma. How can that be?
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