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Big Jump in the VIX premarket. What do you think?


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Big Jump in the VIX premarket. What do you think?

  #1 (permalink)
 aotc 
New York NY
 
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In looking at my charts I noticed that at 5AM pacific the VIX jumped way down. What do you think about this? What happened?



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  #3 (permalink)
 
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 suko 
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VIX is thinly traded during the premarket.


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 josh 
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To be clear, VIX is not traded, derivatives of it are--it is merely an index calculated by the CBOE and is calculated beginning about a half hour before the European cash open. It is true that VXX, VX futures, and friends are all relatively thinly traded before the US cash open. However, this has nothing to do with that blip on your chart. It is a single (or two) bad data point. You are seeing what can best be described as a bad print. You will not see any such activity on VXX or VXJ20. Why is it there? I have no idea. But there was no event of any kind, no good reason for it, it's just a bad print.

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 suko 
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Actually I should have said VIX options are thinly traded premarket. My bad.


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