At one time in 2000 (2001?), Amazon was trading under $50. Who woulda thought a "bookseller" would become the king of the market?
VIX Traders Shaken From Sleep With Discount to S&P Snapping Shut SPY’s put-call volume ratio rises to highest level since March Light equity positioning seen putting cap on hedging demand By Lu Wang June 10, 2022, 2:08 PM CDT Follow the authors @luwangnyc + Get alerts for In this article SPX S&P 500 3,900.86 USD -116.96-2.91% 0671008D SUSQUEHANNA INTERNATIONAL GR Private Company A furious bout of options hedging is tightening up a much-watched gauge of market sentiment: the VIX’s discount to realized volatility in the S&P 500. Viewed by some as a distillation of trader expectations for market turbulence, the gap, which has recently shown a relatively sanguine view on the future, is no longer doing so. After sitting below the S&P 500’s historical volatility for four weeks, the VIX has quickly popped back up to match it. The tightening follows several weeks in which demand for hedging subsided, with stocks bouncing back and equity exposure among money managers falling. Friday’s unexpectedly hot inflation reading prompted traders to ramp up their bets on interest-rate hikes in coming months. With the S&P 500 heading for the worst week since January, some impetus for protection resurfaced. “The VIX is getting more concerned about the future, odds of a 75bps hike in June for example,” said Chris Murphy, co-head of derivatives strategy at Susquehanna International Group. “Options trading has been way more active today than it’s been in the week leading up to the CPI number as the hotter-than-expected print has shaken up markets.” Fed Task Gets Tougher, Putting 75-Basis-Point Hike Back in View Angst is building as investors fret a more aggressive tightening path by the Federal Reserve would drag the economy into a recession. The Cboe Volatility Index, or VIX, jumped more than 2 points to 28.09 as of 2:30 p.m. in New York, while the S&P 500 dropped for a third day, approaching its 2022 low set in May. The uneasiness was also shown in the options trading of the biggest exchange-traded fund tracking the S&P 500. The SPDR S&P 500 ETF Trust (ticker SPY) saw volume of bearish put contracts outpacing bullish calls by a ratio of 1.78-to-1. That’s the highest ratio in almost three months. “Volumes in general was much more skewed to puts rather than calls,” said Danny Kirsch, head of options at Piper Sandler & Co. “Volatility though has acted fairly orderly and that tells us more rolling/monetizing hedges as opposed to adding new ones.” While puts volume climbed Friday, their cost relative to calls was stuck near multiyear lows, a sign to Murphy at Susquehanna that there was no real rush for hedging. “We did see a lot of short covering during the bear market bounce over the past week, but I don’t think investors are overexposed here,” he said. “I expect less of a demand for hedging and more of a buyers strike given how reduced the positions have been so far this year.”
Is that like raging bears like you in March 2020 that said 'it's different this time we are Japan now and forever' ? How about the raging bears in 2016 when the last rate hike cycle started ? Extreme thinking on anything is bad for trading, even if you guess index direction correctly short term.
$VIX.X made double top @ 100pm and markets did the opposite of course:- BTW there was a TD Sell Sequential 13 two bars before.
Vix does not lie.. Its telling you the SPX decline from aug 16 is phoney. SPX has to go up one more time to test aug 16. Give it a bit of time
Get a list of all the dumbphucks in this thread esp. the old timer leader Clubber Lang who only recently gave up on FED worship and watch how he too misses what's aborning as he thinks SPX is gong to HELL - like everyone else here. They will as usual all miss the rocket blast to August 16 top retest by SPX as she prepares for just such a move. These sons of b*tches know doodly squat about the Vix as is easily proven here in this thread. The written word and time and date stamp never lie. Vix will NEVER VALIDATE A PHONEY MOVE. And the SPX crash from august 16 is as phoney as phoney can be. This is why the Commercial Hedgers are gloriously LOOOOOOOONG SPX while the 5k account holders like Clubber Lang, ET's #1 armchair critic sip whiskey and exclaim, "Trading, what a racket" George Peppard would have a sh*t fit if he saw how useless Clubber Lang has become over the last 2 decades. All clubber has been doing is calling Freight train crashes when newbies enter ET Whew! Waht a f***up. They never see anything coming, never see anything aborning. What a friggin joke!!! Anyone still awake with a stiff c**k make sure you get your LONG in on Friday before the long weekend because next week is Rocket north week Burn this place down and start from scratch!