Seriously, is VIX broken or some crazy stuff?!

S

SoyUnGanador

Market is rocketing to the downside like I called it, but VIX is actually DOWN today? Its at 27 despite the market being down so bigly over last few months and days. Feels like it should be at like 40 by now at least.

What gives? Is that an indication the market thinks there is not much downside left? Or if there something else more complicated going on!?!?!
 
My guess is that VIX isn't the same because of the existence of every day of the week expiry SPX options. While only options with Friday expiration are used to calculate the VIX, those Friday options do not behave like they used to behave now that traders can trade expiries every day of the week.

Just a guess, though.
 
Rams Fan said:
My guess is that VIX isn't the same because of the existence of every day of the week expiry SPX options. While only options with Friday expiration are used to calculate the VIX, those Friday options do not behave like they used to behave now that traders can trade expiries every day of the week.

Just a guess, though.
More...

No. OMG, no.
 
SoyUnGanador said:
Market is rocketing to the downside like I called it, but VIX is actually DOWN today? Its at 27 despite the market being down so bigly over last few months and days. Feels like it should be at like 40 by now at least.

What gives? Is that an indication the market thinks there is not much downside left? Or if there something else more complicated going on!?!?!
More...

VIX at 40+ typically comes with sudden, sharp, unexpected shocks. This is just a "normal" yawning bear, at least so far... this is not a Lehman or a COVID. "Most" people have known what's up for most of 2022, if not longer now. It's not panic. VIX is elevated above it's long term average... seems about right to me.
 
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