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Does it makes sense for the VIX to be at 38?


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We have heard about SoftBank in early September making big options bets on tech stocks and there is also the Robin Hood crowd apparently buying calls but despite , how could the VIX be this high?

 

Normally on a day like today, with markets not that far from record highs, you would expect a VIX in the high teens while here we are at Lehman Brothers like level???

 

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I would guess, based on a more qualitative assessment, the upcoming election uncertainty and new lockdowns in Europe / Covid fears help explain some of that.

 

Keep in mind, VIX has been mid 20s / low 30s ever since Covid hit

 

 

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