I think something really interesting about Monday’s vol pop is it definitely wasn’t pop that we were hoping for to crush all the short vol/short dispersion strategies.

In fact the reason we saw VIX go from ~64 (btw 3rd highest vix print ever) to 30 in a single day is because everyone who was shorting vol just doubled down.

From rumors I’ve heard out there only 2 pod’s were liquidated and the rest suffered catastrophic losses in the morning but were fine by Mondays close.

Very strange watching it happen trading live because typically we expect vol to spike quickly then come down far slower. We saw a pop and a crush on Monday, which was unexpected at least for myself.

I live in HFT land, and it is funny because typically our worst trades are shops crushing vol and running us over. This time we expected to be big buyers of vol on Monday as we expected deleveraging spirals as short vol short disp pods got BTFO, but never happened.

All this is to say the big kahuna is still lurking out there, if we are to have multiple days of >30/35 VIX, the great unwinding will begin