contango roughly 5% between spot and M1. vvix looks ready to fall. skew still indicating normal distribution
so this slight pop in vvix is still controlled/favoring the short side overtime due to the embedded cost of carry.we have yet to see a realized volatility moment like we did during December (melt down). with vvix around its historic range, i say no need to fear the reaper. although higher vix may be perceived with higher risk, its actually the opposite. so, with...
VVIx is the implied volatility of vix options. Vix is the implied volatility of spx options so vvix is the implied volatility of spx's implied volatility or vix (vix-ception). It relates to pricing of vix options on both sides but favors vix calls WHEN SKEW (cboe skew) begins to effect OI on spx options. Skew places extra weight on spx puts and allows for the...
market still not stabilized because of this .... probably unwinding undone .. bull just can't be too confident because forced selling can happen anytime ~
Stop looking at the VIX... look at the VVIX instead. There continues to be more demand for hedging against VIX rise compared to 2016. We're not seeing extreme complacency in the options market.
MAJOR MAJOR SHORT SQUEEZE of SHORT SELLERS in Volatilty has YET TO COME!!!
That's when the REAL PARTY BEGINS as it breaks September Highs!
Bullish crossover signal triggered from MACD and now supported by 50 DMA
www.zerohedge.com imply that the overall volatility vega could be $10 billion or substantially higher. Such exposure would lead to dramatic moves in the overall market if the next VIX spike or 5 or more vol points does not suddenly reverse and "fill the gap" as has been largely the case on most previously similar episodes.
Beyond that we should see Fire & Fury that would trigger the 80% Nuclear Wipe out for XIV and other related short vol products...
VVIX measures the volatility of volatility. It's an expected move in volatility, which is an expected move in stocks. Thus, it is another layer of looking at the market Last time VVIX traded above 120 was during Brexit in June 2016. This is extreme fear!
Expect More violent ACCELERATION as shorts would soon get the death squeeze...
DOUBLE THE FUN WITH CBOE's VVIX Index
Long VXX UVXY or any other short volatility etf / etn to profit from backwardated term structure and pickup in vol
VVIX represents the volatility of the VIX indicator, more precisely its the 30 day expectation of the VIX index which is the expectation of implied volatility in the SPX in 30 days time. Read more on this on CBOE's website. VVIX is mean reverting in nature, as it is as index and non-tradable it represents this mean reversion without market expectation building...
Sometimes bears get ahead of themselves and start pointing to "complacency!" so often that you figure when they give up and stop then complacency will be finally at hand. Well I use the VVIX to tell me when we have hit complacency, along with my "freakout indicator" which tracks the VIX & VVIX along with the S&P % above DMAs (50 and 200) for the 100 and...
The VVIX measure the cost of buying an insurance which is the second derivative of cost put protection Based on my last post on 27 Oct, price were on an accelerated retracement back to lower channel. It pierced through and break down of the channel making it look like more downside to come, and within the accelerated downtrend, price got rejected again by...