Mr. 50-cent VIX is likely cashing in today. On January 26, Mr. 50-cent bought 50,000 strike 24 volatility options for 49 cents each. I commented on the trade at the time in Mr. 50-Cent VIX Strikes Again.
Dow Daily Chart
"Everyone in the Room is Short Volatility"
Volatility was once just a measure. Now it's an income-generating product. Everyone is selling it says Pennant Capital.
For details on the short volatility madness, please see "Everyone in the Room is Selling Volatility".
Short volatility traders are getting carted out today. I would not be surprised if a number of hedge funds blew up today with margin calls.
Mike "Mish" Shedlock