VIX upspike...

systematictrader · May 13, 2020

kmiklas said:
Nasty upspike in the VIX late today, from about 27 to 33.

Anyone know why? what happened? Something explode?
More...

probably a drop coming by friday

Tony Optionaro · May 13, 2020

KISS said:
vix is just the price of put prices. the guy selling you put insurance wants more money and think prices are too volatile. wider spread. this kind of volatility is not normal either.
More...

wrong. VIX is calculated using something called a variance swap formula, it uses both calls and puts. Hence violent up moves can also spike vix, and rising IV in SPX calls also drives up spot VIX.

Atikon · May 13, 2020

kmiklas · May 13, 2020

Well, I guess we found out:

Jerome Powell said:
While the economic response has been both timely and appropriately large, it may not be the final chapter given that the path ahead is both highly uncertain and subject to significant downside risks. Economic forecasts are uncertain in the best of times, and today the virus raises a new set of questions. How quickly and sustainably will it be brought under control? Can new outbreaks be avoided as social distancing measures lapse? How long will it take for confidence to return and normal spending to resume? And what will be the scope and timing of new therapies, testing or vaccine? The answers to these questions will go a long way towards setting the timing and pace of the economic recovery. Since the answers are currently unknowable, policies will need to be ready to address a range of possible outcomes. The overall policy response to date has provided a measure of relief and stability and will provide some support to the recovery when it comes. [1]
More...

Treasury Secretary Steven Mnuchin sought to reassure investors about the U.S. economy after stocks slumped to a three-week low on warnings by Federal Reserve Chair Jerome Powell of unprecedented risks. [2]
More...

1. https://www.rev.com/blog/transcripts/jerome-powell-speech-transcript-may-13-coronavirus-address

2. https://www.bloomberg.com/news/arti...l-s-gloomy-outlook?srnd=premium&sref=jjnfhs7c

Log in or Sign up

VIX upspike...

systematictrader

Tony Optionaro

Atikon

kmiklas