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Options craze rewriting rules of VIX, S&P 500 relationship

Lu Wang

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The day-trader obsession with using bullish options to speculate on stocks is doing strange things to the age-old relationship between the US equity market and its benchmark volatility index.

Rather than move in the opposite direction, as the S&P 500 and Cboe Volatility Index have almost always done for three decades, they went up in unison for two weeks -- a stretch of synchronised increases not seen in 14 months.

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Bloomberg

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    Original URL: https://www.afr.com/markets/equity-markets/options-craze-rewriting-rules-of-vix-s-and-p-500-relationship-20211109-p5975w