The Elephant Also Rises: VIX Spikes Most In 8 Months

via: ZeroHedge
by: Tyler Durden
July 23, 2012

Tyler Durden's picture

VIX is trading back above 20%, up over 4 vols this morning as itsjump is the largest in over 8 months. This instant response to the ultra complacency we discussed last week, as ‘they’ take their totally dislocated foot off the neck of implied vol, hasshifted the short-term volatility expectation from its calmest in almost four months to its most terrified in a month. Perhaps, just perhaps, the talking-heads who espouse this ‘fear’ index will finally realize its contemporaneous nature and treat it with the disdain it deserves. For now, it appears expectations of market turbulence – now that OPEX is out of the way – are reverting to more realistic levels of un-complacency, back in line with stocks and credit.

VIX jumps over 25% (over 4 vols) in a pattern of risk-flare-to-complacency-to-panic that we have seen before…

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