Market Doom Loop Update: Risk From VIX ETPs, CTAs Flashes Red

Market Doom Loop Update: Risk From VIX ETPs, CTAs Flashes Red

It's all about "loops" and "spirals" these days. On Tuesday some folks were out warning that if the NAV discount on high yield ETFs gets too wide, it could conceivably lead the arb crowd that's implicitly responsible for making sure everyone's worst ETF fears aren't realized to act irrationally thus short-circuiting the safety valve in a devastating "spiral." You can about that in the high yield context here and in the EM bond context here. When it comes to "loops" the discussion very often ce
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2 thoughts on “Market Doom Loop Update: Risk From VIX ETPs, CTAs Flashes Red

  1. I’ve been trying to figure out a list of stocks that would be most vulnerable in a market sell off and buy way out of the money puts dated a few months out and roll them over as downside protection in case of black swans. The only problem is that most get bought right back up after minor sell offs like the past several days like TSLA, CMG, AMZN, NVDA. Any suggestions?

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