Huge Bet on VIX
Posted 04 December 2017 - 12:18 PM
It doesn't take much to move the VIX into that range because of the large number of shorts using the XIV and SXVY to hedge SPY shorts. Gundlach estimated that a mere 2-3 percent decline in the SPX would suffice.
Posted 04 December 2017 - 12:34 PM
On IB's TWS they put a short sell restriction on XIV when it's up big today.
Edited by redfoliage2, 04 December 2017 - 12:41 PM.
Posted 04 December 2017 - 12:41 PM
The ETF can also be closed out by the backer if it moves too far against them.
Edited by Data, 04 December 2017 - 12:41 PM.