The VIX index and VIX futures both getting pressured in a big way
The VIX index and VIX futures both getting pressured in a big way: Sevens Report Co-Editor Tyler Richey Quoted in S&P Global
Stock market ‘fear gauge’ plunges; investors expect rally to persist into 2025
Volatility dynamics in the stock market have shifted since the election when many investors crowded into downside stock market hedges on fears that a Democratic victory could lead to taxes on unrealized capital gains, said Tyler Richey with Sevens Report Research. This also hurt the performance of short volatility strategies, which had been crushed by a massive VIX squeeze at the start of August, Richey said.
“Between the post-election unwind in broad stock market hedges and a suffering short-volatility crowd [throughout 2024], the derivatives market pendulum swung hard from one extreme to another with the VIX index and VIX futures both getting pressured in a big way over the last month,” Richey said.
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