VIX Surge Is Unwelcome Lesson in Duplicity of Volatility Wagers
- Short volatility trade takes a hit after months in the green
- Long volatility trade pays out but only for astute timers
The Short Volatility Trade Takes a Hit
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It finally happened.
After months of speculation over when the lull in U.S. equity volatility would snap, investors got their answer Wednesday. A bombshell report on President Donald Trump’s interactions with former FBI director James Comey sent the VIX up the most in almost a year.