2 replies to this topic

[libertas]

The volatility sellers are running the market, offsetting the selling pressure from rising interest rates. But their positions are large again, running the risk of another "Volmaggedon," like the one in February. Watch out. If rates continue to decline, selling pressure will increase and it could lead to a short squeeze on the vol sellers. And we've seen what happens then.

Edited by libertas, 17 May 2018 - 01:56 PM.

[SemiBizz]

This little VIX  Suppression Engine worked so well, for so long... that it was bound to eventually blow up...

 

And yes that is what is going to happen again, because the word got around secondhand-half-baked about this trade and some suckers are about to be carwashed in it...

 

It happens so fast too...

 

[Data]

Specs net position in VIX is back to net short for the first time since February volatility spike.  All-time high net short was back in Q4.  In early April, it reached an all-time net long.  They are net short most of the time, even during bear markets.