VIX futures! History is made!

VIX futures! History is made!

It's fascinating what I've uncovered while studying what happened in the volatility market last week. History was literally made! We've seen daily, weekly, and monthly gains and declines that were NEVER seen before last week! In particular, VIX futures saw some of the more interesting moves.. Lets take a look at some of those moves below:

VIX futures on 2/6 saw their biggest 1 day decline (-28.14%) since the financial crisis (-28.77%).

As impressive as the up moves in VIX futures were last week, you have to pay attention to the down moves as well. Lets take a look at some of those historic up moves:

February 5, 2018 saw the biggest 1 day gain in the history of VIX futures! 

Impressive as that above chart is, the weekly chart tells an even more fascinating story. 

The week of 2/5/2018 saw the third and biggest 1 week gain in the history of VIX futures!

The 4th chart puts the cherry on top of the historic things we've seen in VIX futures recently.

The month isn't over yet, but this could be one of the top 3 monthly gains in the history of VIX futures!

What is causing these massive moves in VIX futures? Volatility etfs/etns have a role to play for sure, but so does leverage. The FED has an even bigger role to play here. At the end of the day, if the federal funds rate stays too low for too long, it forces humans to do things that they wouldn't normally do. They take on bigger and bigger risk because the cost of borrowing is cheap! When the cost of borrowing starts to go higher, that is when the dominos start to fall and we hit the reset button!

Thank you for reading!

Disclaimer: Nothing in this blog should be taken as investment advice. You agree by reading this that any actions taken by reading this material is at the reader's discretion and the author (Robert Lesnicki) will not be held liable for any losses incurred. Any content in this blog is intended to be for entertainment/educational purposes only and is in no way a recommendation to buy or sell securities. Robert Lesnicki may hold positions in securities mentioned in this blog and may trade for his own account (s) based on the information presented. Stocks and options trading involves substantial risk of losses and is not suitable for every investor.

The “speculative portfolio” is made for entertainment/educational purposes only. Nothing in the “speculative portfolio” should be taken as investment advice. Securities mentioned in the “speculative portfolio" can lose value. Robert Lesnicki may hold positions in securities mentioned in the “speculative portfolio.” You agree that any trade/investment actions taken after reading information in the “speculative portfolio” is at the reader’s discretion and Robert Lesnicki will NOT be held liable for any losses incurred.

Most of the information on this blog is sourced from other websites. At times, the information provided may not be updated in a timely manner and may contain old or outdated information. The data may not be 100% accurate. It is up to the reader to verify and make sure that all information presented in this blog is whole and accurate. You agree, that by reading this, any actions taken based on information in this blog, is at the reader’s discretion and Robert Lesnicki will NOT be held liable for any losses incurred

DATA INFORMATION IS PROVIDED TO THE USERS “AS IS.”

NEITHER “Robert Lesnicki” , Robertlesnicki.com, NOR ITS AFFILIATES, NOR ANY THIRD PARTY DATA PROVIDER MAKE ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND REGARDING THE DATA INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

 
This is NOT a trade recommendation. Robert Lesnicki is NOT, and DOES NOT claim to be a financial advisor. Please consult your financial advisor before making any investment decision. Securities mentioned in this post can lose value and essentially go to 0.

XIV just went bust! Where do we go from here?

XIV just went bust! Where do we go from here?