Source – zerohedge.com
– It’s amazing to think that just earlier this week VIX traded at 13 (and that a few weeks ago the S&P was testing all time highs): as of this moment the vol index is up nearly 100% since Tuesday (and all those ‘sure thing’ shorters of VXX are about to get some very unpleasant margin calls).
But what would be far scarier is if whoever is suddenly offering a nickel for the VIX Sept 50 calls actually knows something.
Because if he “does”, that would suggest a market move ‘Straight out of Lehman.’
Alternatively, those who are confident there is no risk of a plunge in the next few weeks should just hit the bid until the buyer pulls it: after all, what can possibly go wrong with collecting nickels, literally, in front of a central bank steamroller (one made, appropriately, by CAT) that is rapidly losing credibility.
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