Wednesday 15 May 2013

Volatility fails to hold earlier gains

For the second day running, whilst the main indexes battled to new highs, the VIX started to break upward..with gains of 5% in the mid 13s. Yet, as is also often the case, the VIX melted into the close, closing +0.3% @ 12.81.  The market is entirely complacent of all future events.


VIX'daily3



Summary

There is little to be said about this.

There are a few out there buying VIX 'insurance' option Call blocks for June..and even much further out, but its generally very low volume.

The majority do not expect VIX breaking above 14/15 any time soon.
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more later..on those indexes