The volatility index, commonly known as the VIX, is experiencing significant activity, indicating a potential surge in market volatility. Over 3 million VIX call options are set to expire within the next 48 hours, with notable open interest at strikes of 16 and 60, and an exceptionally high open interest of 21,000 calls at the 180 strike. The VIX itself has risen to 19.56, reflecting increased market nervousness. This shift in market sentiment is further evidenced by the VIX futures curve moving from a state of 'Chill' to 'Concern' according to Bloomberg's indicator. Traders are responding by placing hedges, with some opting for highly speculative positions, such as VIX 50 'yolo' calls.
Sources
Cheddar Flow
$VIX futures curve flipped from ‘Chill’ to ‘Concern’ on Bloomberg’s indicator https://t.co/s94X2dz8l0
MarketWatch Wall Street’s ‘fear gauge’ surges as volatility reawakens across markets https://t.co/R9alDLJxZC
Wuhan Judicial Coup Swan Volmaggedon hedges on. $VIX 50 yolo calls real cheap. $vxx $uvxy $spx