Quantcast

Daily Traders Edge

Traders are doubling down on one of the market’s hottest trades

August 17
14:46 2017

You’d think last Thursday’s stock market shock would have investors betting on more price swings.

The opposite has happened.

Traders are instead using the 44% single-day spike in the CBOE Volatility Index — or VIX — as a reason to pile into wagers that the measure will come back down.

Using exchange-traded notes, they’ve made their exposure $393 million more bearish on the VIX over the past week, according to data compiled by financial analytics firm S3 Partners. In other words, they’re betting that stocks will revert back to the listless, sideways trading that’s characterized so much of the action in 2017.

One place traders are looking is the VelocityShares Daily Inverse VIX Short-Term ETN, which amounts to a direct short bet on the fear gauge. It’s surged a whopping 81% year-to-date, and investors have added roughly $165 million of exposure over the past week.

Continue Reading at Yahoo! Finance

Related Articles

Newsletter Signup

Sign up for our free newsletter