Investors are back to shorting volatility. After seeing outflows for three straight weeks, an exchange-traded fund that moves in opposite direction to CBOE Volatility Index futures posted its biggest weekly inflows since June.
At the same time, short VIX futures positions hit a fresh peak, while the ratio of outstanding puts to calls on the gauge is slowly creeping back up, ending last week at its highest level in more than a month.
Source: Bloomberg Pro Terminal
Jr Trader Ivan Ivanov