One thing Matthew Tym has learned in two decades as a derivatives trader is to make sure he understands something before using it. That lesson is guiding his view of Wall Street’s new fear gauge.
The Cboe 1-Day Volatility Index (ticker VIX1D) launched on Monday (Tuesday AEST) as a way of distilling the price impact of a trading boom in options with a shelf life of less than 24 hours. But most market pros, such as the head of equity derivatives trading at Cantor Fitzgerald, watched bemused from the sidelines as a series of big moves unfolded.
