Chart of The Day – June 22, 2020

By: Chris Wenner in Charts 06/22/2020

Observing where net VIX contracts are positioned can be a useful tool to see if, on balance, participants are overlay net short vol/the VIX (or not), and if a looming squeeze might be on the horizon.  Today, net VIX future contracts are not overly short, at all.  While the number is indeed negative/net short, it is far from what we saw at the end of 2019 – and at other recent times that preceded at a major selloff in equities/squeeze and quick rise in vol.

There are countless metrics to keep an eye on in vol land – this is merely one of them.  And this one isn’t signaling an imminent spike in vol/drop in equities.



By: Chris Wenner

Managing Director

Jonathan Molchan

Wennco's innovative strategies and robust OCIO capabilities are designed for RIAs, Family Offices, and high-net-worth individuals.

Follow Us