Volatility: “I Don’t Like Monday’s Either”

 

Actually a stat like the VIX does like Monday’s. Just not today as at hovers near 52 week lows.

VXX though? That wild and crazy ETN that track’s VIX futures could care not a whit about such mundane things as the day of the week. And VXX has hit all-time lows today.

Now “all-time” is not as impressive when you have only existed for 8.5 month’s, and 6.5 of those month’s has seen volatility quite heavy.

But still. It’s a good proxy for the dimished future expectations. Now VIX futures still carry premiums to “cash”. November for example is still near 26. But they’re trending lower at a faster pace than the VIX itself as the reality sets in that last year was pretty much an aberation, and a VIX in the 20′s is fairly normal.

 


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