1.VIX Options Trading Drops
Traders’ interest in VIX options keeps on waning. The collapse of a popular exchange-traded note amid a surge in market turmoil earlier this year helped send the number of Cboe Volatility Index contracts tumbling, and this month options volume has slumped to a three-year low. The VIX is heading for a May drop, a pattern that led to gains in June in the past four years, Bloomberg notes.
@sentimentrader notes “Using big 1-day jumps in the VIX as a signal that volatility is about to pick up going forward has been, to put it mildly, unsuccessful.”
From Dave Lutz at Jones.
