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Just better clarify my thoughts on the VIX.Let's s

Posted on July 06, 2008

Just better clarify my thoughts on the VIX.Let's say I returned to the turrets after a year or two off and got nutshelled a description of the market backdrop right here and now. And then got asked where I expected to see the VIX. I would guess higher than 25, no question. In my opinion, option sellers are not fully compensated for risks right here.But a large part of that risk is the chance of a rip roaring short squeeze.Yes, if we turn violently some day, the VIX on the board will decline. Perhaps importantly, it depends on the specifics. But it's vital to distinguish what the VIX does fro...

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earnings , options , short squeeze , volatility