This could be the day many Robinhood day traders become long term investors
Eli Mintz
9,259 posts
Eli Mintz
@VixCentral
Volatility mean reverts but contango losses are forever...
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Joined June 2012
- The return of the $VIX futures curve to its August 1 levels was very quick and there are no historical parallels I can remember. Volatility goes up very quickly but usually goes down slowly over weeks, not a few days.
- Replying to @conorsenAre they calling the loans? If yes, this is catastrophic for him
GIF- For all you newbies who were not trading in the eighties, the play is to wait for interest rates to peak and then buy zero coupons of US utilities. You are welcome.
- The VIX Term Structure has reached full batmobile. This could be a major signal. Stay vigilant folks.
- Replying to @mattyglesiasYep, she takes a problem that can be solved and tells you that we are only going to solve it by fundamentally changing society, not by the straightforward method of building more
- Replying to @yourcityseattleThis is a great opportunity to show how socialism is superior to capitalism! Why don't the baristas on strike leave Starbucks, form a commune and found coffee shops to compete with Starbucks? They have all the expertise and surely can find donors for the capital. Let's go!
- Apropos of nothing, this is the comparison of where we are today relative to 2008 in $VIX futures. Unless there is some systemic risk lurking, meaning that the system may collapse and the authorities won't react in time, we are in a "normal" correction.
- Why are we not seeing backwardation in the $VIX futures at these elevated levels? The main reason is that the far futures have remained elevated due to the pandemic induced volatility from last year. It took years for the far futures to come down after 2008.
- Replying to @RadioFreeTomShe meant retaliation against Alaska the state, as in cutting money going there. She is in a bind as she has to act in the best interest of her constituents.
- $VIX term structure is in backwardation with a premium of about 200% over 10, 20 and 30 day realized volatility. The market is either seeing something coming down the road or mispricing volatility. To be clear, I don't know which is correct.
