Matt Levine, Columnist

VIX Hedging and College Sports

Also Aramco, cryptocurrencies, "and," complacency and unicorns.

May 26, 2017 at 1:07 PM UTC

Corrected

May 26, 2017 at 1:48 PM UTC

Matt Levine is a Bloomberg Opinion columnist. A former investment banker at Goldman Sachs, he was a mergers and acquisitions lawyer at Wachtell, Lipton, Rosen & Katz; a clerk for the U.S. Court of Appeals for the 3rd Circuit; and an editor of Dealbreaker.

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VIX manipulation?!

We talked on Wednesday about the CBOE Volatility Index, the VIX, which is an index of implied volatility based on S&P 500 Index stock options. The VIX is used as the reference for VIX futures and options, and we discussed a paper by John Griffin and Amin Shams of the University of Texas arguing that a monthly auction for the S&P 500 options is manipulated to influence the price of the VIX and the settlement prices of VIX derivatives.