What gives? It seems it should be MUCH higher given how much pants-shitting is going on in the market.
What gives? It seems it should be MUCH higher given how much pants-shitting is going on in the market.
In Jan/Feb, people reduced exposure and/or hedged for this amount of drawdown, so VIX in the upper-20s is about right.
If/when we go down significantly further, VIX will pop because we'll be beyond most of the hedges.
Also worth keeping an eye on how VIX behaves relative to VOLQ.