Bets on Wall Street's Fear Gauge Swell Near March 2020 Levels

ETJ

ETJ

Bets on Wall Street's Fear Gauge Swell Near March 2020 Levels
Eric Wallerstein - WSJ
Traders are gearing up for the possibility of a big upswing in market volatility soon.
More call options betting that the Cboe Volatility Index, or VIX, will rise have changed hands on an average day in February than at any time since March 2020, Cboe data shows.
/jlne.ws/3IY7BvL
 
ETJ said:
Bets on Wall Street's Fear Gauge Swell Near March 2020 Levels
Eric Wallerstein - WSJ
Traders are gearing up for the possibility of a big upswing in market volatility soon.
More call options betting that the Cboe Volatility Index, or VIX, will rise have changed hands on an average day in February than at any time since March 2020, Cboe data shows.
/jlne.ws/3IY7BvL
More...

Well, it makes sense. Everyone knows the VIX will never again reach it's historical low of 9 ever again. EVER. So now peeps are watching that 20 level like a hawk, and it makes sense to go long VIX at this level. Cyclical stuff.
 
Overnight said:
Well, it makes sense. Everyone knows the VIX will never again reach it's historical low of 9 ever again. EVER. So now peeps are watching that 20 level like a hawk, and it makes sense to go long VIX at this level. Cyclical stuff.
More...
This is from the article:
  • One of the biggest wagers tied to the VIX—sometimes referred to as Wall Street's fear gauge and currently around 21—is for the index to hit 75 within the next month. That's a rarely-seen level, only having come about during stock-market crashes.
  • Another popular bet sees the VIX reaching 40 in the coming months, a level signifying that options-market protection from a downturn is in high demand. That level hasn't been breached since 2020.
Anything over 30 is considered bearish, but 75? That's a doomsday scenario. I don't see anything of that happening by what's happening in the current market but, who knows, somebody might have an access to the crystal ball.
 
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