Posted by DigiNomad on 5th of Jun 2023 at 01:27 pm
The problem with VIX is the FED. The mechanics of the way
it is calculated led to a situation where they basically took the
stuffing out of it. Why buy puts when you KNOW the Fed put is in
place (as proven again recently with SVB)? The answer is that
people mostly don't buy them these days....so we get an perpetually
low VIX even with volatile price.
Look at a chart of the VIX since the FED announced all the
interventions tied to the SVB Billionaire bailout. It collapsed
ever since. Before that, there was a rumor that the Fed put maybe
had gone away...then they showed us it was very much still alive
and well. The VIX reacted appropriately.
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HOPE VIX is uppity as
Bought SQQQ 21 .26
Posted by rbreese on 5th of Jun 2023 at 12:47 pm
HOPE VIX is uppity as I own some calls too Good luck
The problem with VIX is
Posted by DigiNomad on 5th of Jun 2023 at 01:27 pm
The problem with VIX is the FED. The mechanics of the way it is calculated led to a situation where they basically took the stuffing out of it. Why buy puts when you KNOW the Fed put is in place (as proven again recently with SVB)? The answer is that people mostly don't buy them these days....so we get an perpetually low VIX even with volatile price.
Look at a chart of the VIX since the FED announced all the interventions tied to the SVB Billionaire bailout. It collapsed ever since. Before that, there was a rumor that the Fed put maybe had gone away...then they showed us it was very much still alive and well. The VIX reacted appropriately.