Uncertainty Bet Loses Billions

This is a U.S. news story, published by Yahoo Finance, that relates primarily to CBOE news.

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surprising investors

Reuters

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Analysis-Traders lose billions on big volatility short after stocks rout

Summary

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Investors in 10 of the biggest short-volatility exchange traded funds saw $4.1 billion of returns erased from highs reached earlier in the year .

The CBOE VIX index posted its largest-ever intraday jump and closed at its highest since October 2020 on Monday as U.S. recession fears and a sharp position unwind wiped off $6 trillion from global stocks.

Goldman Sachs did not immediately respond to a request for comment.

"When markets were at near highs, complacency became rife, so it’s not surprising investors, largely retail, but also institutional, were selling volatility for the premium," says Columbia University professor.

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formal

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English

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