Aug
09

Hedge Funds All In on VIX Plunge as S&P 500 Hovers Near Record

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  • Large speculators most bearish since 2013 on ‘fear gauge’
  • S&P 500 hit fresh all-time high intraday before trimming gains

Professional speculators are making record bets in volatility markets that U.S. stocks will keep rallying.

Hedge funds and other big traders tracked by the Commodity Futures Trading Commission have pushed net short positions on CBOE Volatility Index futures to 115,000 contracts, the most since 2013, data compiled by Bloomberg show. Shorting volatility is effectively a bet equity prices will rise since the VIX and stocks move in opposite directions 80 percent of the time…

Hedge Funds All In on VIX Plunge as S&P 500 Hovers Near Record

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