this post was submitted on 15 Sep 2023
-6 points (31.2% liked)

News

23301 readers
3811 users here now

Welcome to the News community!

Rules:

1. Be civil


Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban. Do not respond to rule-breaking content; report it and move on.


2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.


Obvious right or left wing sources will be removed at the mods discretion. We have an actively updated blocklist, which you can see here: https://lemmy.world/post/2246130 if you feel like any website is missing, contact the mods. Supporting links can be added in comments or posted seperately but not to the post body.


3. No bots, spam or self-promotion.


Only approved bots, which follow the guidelines for bots set by the instance, are allowed.


4. Post titles should be the same as the article used as source.


Posts which titles don’t match the source won’t be removed, but the autoMod will notify you, and if your title misrepresents the original article, the post will be deleted. If the site changed their headline, the bot might still contact you, just ignore it, we won’t delete your post.


5. Only recent news is allowed.


Posts must be news from the most recent 30 days.


6. All posts must be news articles.


No opinion pieces, Listicles, editorials or celebrity gossip is allowed. All posts will be judged on a case-by-case basis.


7. No duplicate posts.


If a source you used was already posted by someone else, the autoMod will leave a message. Please remove your post if the autoMod is correct. If the post that matches your post is very old, we refer you to rule 5.


8. Misinformation is prohibited.


Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.


9. No link shorteners.


The auto mod will contact you if a link shortener is detected, please delete your post if they are right.


10. Don't copy entire article in your post body


For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.

founded 1 year ago
MODERATORS
 

Some traders are betting that the stock market will go into a cataclysmic selloff that could make the Covid crash look like a picnic.

According to Bloomberg, a trader recently placed a $30,000 bet that the CBOE Volatility Index, or VIX—known as Wall Street’s “fear index”—will shatter new highs.

The VIX typically trades on a scale of 10-80, with 20 representing the historic average. Anything above 20 implies that the S&P 500 will experience unusually high volatility—which is a precursor to a selloff.

This trader expects the VIX to clock in at 180 by Feb. 14; that’s a 1,100% increase from current levels.

VIX has never traded above 100, and it hasn’t even been above 35 (extreme volatility) this year.

While it’s easy to dismiss this trade as ludicrous—after all, investors make crazy trades all the time—it’s not an isolated bet.

As Bloomberg reports, traders have opened more than 20,000 contracts for VIX December options with the same target price. Just last week, 5,000 of those contracts traded hands.

Clearly, some corners of the financial market are taking this bet seriously—or using it as part of a bigger strategy.

top 2 comments
sorted by: hot top controversial new old
[–] rikonium@discuss.tchncs.de 9 points 1 year ago

So at least one trader, that’s sure informative!

[–] FlyingSquid@lemmy.world 3 points 1 year ago

or using it as part of a bigger strategy.

Most likely.