Reported 2 months ago
A recent spike in the Cboe Volatility Index, which rose by a record 42 points, has shaken traders on Wall Street who had invested heavily in strategies betting on market calm. This volatility followed significant declines in stock prices, raising concerns about the sustainability of short volatility positions that have proliferated since the pandemic. The situation could trigger a domino effect, exacerbating market downturns as hedge funds and market makers adjust their strategies under pressure.
Source: YAHOO