VIX surge causes 'great panic' in the options market - McElligott of Nomura
September 4, 2024 19:11 JST (excerpt)
Counterparties in the options trading on August 30 are forced to cover their risks
The volatility of volatility, the VVIX index has experienced an abnormal increase.
The significant settlement of options positions on the CBOE Volatility Index (VIX) indicates that the market is becoming vulnerable to rapid fluctuations in the VIX, according to Charlie McElligott, Cross-Asset Strategist at Nomura Securities International.
According to the report by McElligott, hundreds of thousands of options are expected to be purchased on August 30, anticipating a more than 40% increase in the VIX over the next few weeks. This large-scale trading activity has not been seen since the stock market crash earlier in August.
Counterparties in the options trading on August 30 are forced to cover their risks
The volatility of volatility, the VVIX index has experienced an abnormal increase.
The significant settlement of options positions on the CBOE Volatility Index (VIX) indicates that the market is becoming vulnerable to rapid fluctuations in the VIX, according to Charlie McElligott, Cross-Asset Strategist at Nomura Securities International.
According to the report by McElligott, hundreds of thousands of options are expected to be purchased on August 30, anticipating a more than 40% increase in the VIX over the next few weeks. This large-scale trading activity has not been seen since the stock market crash earlier in August.
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