https://www.markets.com/analysis/hedge-funds-vix-short-volatility-risk-812-en
Mostly by hedge funds too, what would happen if investors loaded on UVXY, UVIX ? A short squeeze could happen
Tell me what you think in the comments I will try my best to reply to all of you guys.
https://i.redd.it/bwsqcvh0srlf1.jpeg
Posted by Outrageous_Guava3629
21 Comments
ELI5 what this means please
I’m going long on VIX, not to counter the HF but to hedge my own portfolio. Also, I hope they remember the 2018 Volmageddon. Not saying history will repeat but it does often rhymes.
Xiv subscribers remember
This is betting on a decline in market volatility seen in the s&p 500…
I am unsure about that…
shorting vix below 15 sure sounds crazy
I really thought UVXY would have spiked by now but it keeps going lower. I’m thinking that it’ll go under $8 and that price will be the norm. Meaning, sustained higher highs in the market in the short term.
Volmageddon 2.0 right around the corner!
Who is shorting this shit when it is below 15??
Wow that is quite something. So any surprise negative news is going to send us absolutely skyward.
The market seems controlled by something
Or let’s say people are going long on VIX at an unprecedented levels. This how you should look at it.
Thinking of going long puts out 6 months. Economic headwinds are piling up at a staggering rate, though Q2 GDP is stronger than previously estimated. Though consumer confidence, inflation, payrolls, even consumption is turning sour, and we haven’t even hit the fill impact of tariffs yet.
UVXY stinks as a long-term hold because of roll yield.
This seems like one of the worst bets to make. Small gains maybe, but huge downside.
Then let’s buy
This is a 5year chart though…
Weird! Perhaps the effect of AI?
Hahahaha
Wait why, this is nuts
I bet it’s hedges
Explain this to me like I am 10. What does this mean?
Many shorts means a storm is coming. It doesn’t mean that it will crash, it can also skyrocket. What it indicates is that you should expect volatility. High short amounts can go either way, only thing sure is that it won’t stay stable. Remember that short squeezes are a thing.
In general, VIX increases as market becomes inflated or unpredictable. As retail investors have gained easier access to the market, the VIX has generally increased. You want to bet that it will go lower? Not a good bet… and that’s what it would be, a bet, not a calculated investment.
Short squeeze on the vix? Bro are you even listening to yourself? The VIX is an index that measures the implied volatility of options. It responds to increases in IV.