What is going on with volatility

This isn't really a new phenomenon...You can find this situation historically when the market starts "pricing in" a surge in volatility as the S&P rallies...Just look back to last December...final week of the year S&P jumped a bunch but VIX jumped even more...Same thing occurred in the final week of Oct 2015...Basically a "Vix divergence".

 

Most of the brexit polls have them staying in the EU, by a decent margin.

 

Expect the unexpected... It,s anybody's guess what would happen if we vote "Leave"". Maybe nothing, who knows.

 

this is a f in' joke. SPX only off by 3 and VXV up 2.5% ... and up 7% since Tuesday morning. thank god I sold the strangle 2 weeks ago and not on Monday

If the breakfast is such a big concern, woudn't the market be falling hard now? Why the concern now instead of any other day

 

Because vol is a cheaper hedge for a tail event than selling stock.

 

The VIX is at 14 give or take. At historically low levels. I would hardly say the VIX is pricing in such a big concern. LOL.

 

• Low volume on the markets today.
• When buyers step in DOW, DIA and the QQQ's are going to go nuts to the upside. Sooner than later.
  
• Lots of Fear recently and that means Rising Markets.

 

I thought the opposite was true. High vol (lots of fear) means market drops?

 

VIX is hardly up, I wouldn't say all-time low but definitely not expensive. European Vols are up 25-30% from end May... All are in the 20's.

So VIX would be a cheap hedge...

 

Just curious, how many short ES contracts do you trade per VIX to hedge? If your VIX exposure is say 10k on VIX at 30, you short 2 x ES?

VIX doubling = ES -5%?