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