Just a little fair warning in light of everything that’s unfolded over the past 18 hours, the VIX is at 50.
That would be 50 as in a “5” and a “0”. Put together. To form one number.
So that would be an additional 35%-ish on top of Monday’s historic surge.
Intraday, that’s the highest since the aftermath of the yuan devaluation.
The VIX just surged above 50 for the first time since August 2015 https://t.co/AmtDXamaCI pic.twitter.com/WVv3wswPXP
— Bloomberg (@business) February 6, 2018
And just so we’re all on the same page here, on a closing basis, that would be the highest since March 2009:
The inverse-VIX ETPs are of course halted and apparently, Credit Suisse is thinking about buying back XIV after what happened on Monday.
Good luck folks…
overheard on Monday at 3:15 at the offices of every newly-minted "money manager" charging people to buy SPY and QQQ on their behalf… pic.twitter.com/goIjWUM30E
— Heisenberg Report (@heisenbergrpt) February 6, 2018
ok–so what happens next?
lots of chatter about mean reversion.
ok–i get that but don’t think that will happen.
halt trading? my account has not even settled yet.
shit is all over the place.
thoughts?
I go into detail about what happened to SVXY and XIV on Seeking Alpha: https://seekingalpha.com/article/4143619-short-volatility-trade-sees-black-swan-event
There’s blood in the streets and now it’s time to look at the mean reversion trade, IMHO. For me, I’m buying at long $VIX and $VXX puts as well as a calendar put spread on $SVXY.