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Huge Bet on VIX


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#1 redfoliage2

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Posted 04 December 2017 - 10:47 AM

http://www.businessi...january-2017-12

#2 Data

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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.



#3 redfoliage2

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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.


#4 Data

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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.