3 Extreme Volatility Charts We are Watching: The Big VIX Short

Praying for boring

VIX dealers are once again running very big short positions. Give the latest VIX implosion, things could easily turn "dynamic". Nomura's derivatives guru McElligott writes: "The backtest on prior “Asset Manager VIX Net Positioning Puke with VIX at an Extreme Low Absolute Level” shows UX1 / VIX Futs forward returns out 3m / 6m / 12m all notably HIGHER on the median, with high Hit-Rates and lumpy Excess Returns".