What the Vol Crush?

Around noon today I was working with a client in a mentoring session discussing risk managment when something strange happened.  The SPX rallied about 3 handles...not strange, but with that rally came an absolute woodshed style THWACK to VIX and VIX futures.  In a matter of minutes VIX went from Flat on the day to down .80, ending down about 1.25.  VIX futures for there part gave away almost as much in a short period of time falling from 20 back to 19.50 i minutes.

Blog Image: 

14 is the new 10 for VIX, or maybe 15

Look for our next Saturday Webinar soon!

As 2015 draws to a close on low volume and kind of ugly action, I try to figure out what the next year is going to be like in terms of volatility and the VIX.  Some general observations from this year:

VIX as of today is up a point with stocks around the same place from last year.

We had another Flash Crash in August for no real reason.

Blog Image: 


Subscribe to RSS - blogs