What a ridiculous day it has been, as algo’s go wild yet again in the market. VIX exploded to 18.71, as the market dropped 20+ handles on SPX, and panic buyers came into VIX options, driving some contracts up over 100% at one point. A headline crossed mentioning that Boehner will work to avoid a default and other nonsense, saving the market yet again. Nov 16, 2012 anyone?
Phantom Liquidity was ridiculous in VIX premiums today, especially around the bottom of the SPX daily range. Unreal. Premiums exploded, as everyone was picking up protection with both hands and feet. For instance, bids would display 3k behind them, but the minute you put an order in, you would get executed in a heartbeat. Premiums have come back to reality, as the market bounced, but we saw action as far out as 50 in the front month contracts.
BREAKING: SHOTS FIRED AT U.S. CAPITOL