Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By The Total Investor
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

Buy the VIX Now?

Sunday, December 15, 2024 18:49

% of readers think this story is Fact. Add your two cents.

Now you have to…

Complacency and calm, that is the way to describe the general sentiment in the markets right now and we are hearing more and more “volatility is dead” trades presented. However, never ever forget that volatility is mean reverting. The actual VIX level at its natural floor, combined with the most extreme VIX call skew we have ever seen and several extreme technical positioning indicators, leads us to put on cheap VIX call spreads. To be clear, this is not a call that stocks will crash – this is a call on VIX upside optionality.

The saying is that you should buy VIX when you can, not when you have to – but this time it is slightly different – you have to buy it because the trade is simply too attractive to ignore.

1 – Natural floor

VIX is close to the “modern days” natural floor. Volatility is mean reverting, so don’t expect much lower levels of volatility.

Source: Refinitiv

2 – VVIX not buying it

The latest gap between VVIX and VIX is very wide. You pay attention to well bid VIX, despite things moving little at the moment.

Source: Refinitiv

3 – A record skew

VIX call skew hit all time high of 1.5x (the 3 month 5/50 delta call). Volatility is low, but tails are priced extremely rich. This makes VIX call spreads attractive.

Source: GS/Garrett

4 – The puke

VIX specs have puked “it” since the election. They are back to running rather big shorts. Such big changes in specs could become a problem should things start to move again…

Source: Refinitiv

5 – The chasers

ETNs are huge buyers of VIX should things get a little less calm. We have seen this movie play out before.

Source: Nomura

6 – The Christmas gift

Long VIX under the Christmas tree? We have a few more boring weeks, but VIX seasonality is very strong from mid January. Can you afford to wait?

Source: Equity Clock

7 – Hedge fund leverage getting extreme

Many of the positioning indicators we look at are now at extreme levels. We are only showing one here – JPM prime brokerage data showing how net leverage continues to spike. with percentile numbers in the high 90′s. This does of course matter for the VIX trade as well – a little less complacency leads to equity selling which leads to higher VIX. It’s all inter-connected.

Source: JPM PI

Source: https://totalinvestor.blogspot.com/2024/12/buy-vix-now.html

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

LION'S MANE PRODUCT

Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules

Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.

Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.

Comments

Online:
Visits:	1,666,071,032
Stories:	8,322,030