When reader Sunny asked about a jump in the VIX earlier it had spiked to just over 14. A few minutes since then it’s had another spike to 19.53. This comes on the back of the index falling on the back of investors hedging less against volatility. VIX trades are down 25% vs this time last year. The fewest contracts traded on the 28th October since December 2011 and is 91% down from a record set on 8th October and the biggest fall for 5 years.
Whoopsee
I thought the initial spike was merely based on some hedging ahead of the Fed which was a hefty jump by itself but this looks like your average fat finger job.
Zerohedge was all over it as usual.
Ultimate fat fingers
Update: Looks like there’s some price errors going through as the exchanges are having some problems and have been routing trades elsewhere today. Options Market Hit With Data Disruptions courtesy of BBG
