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VIX measures the risk premium on options on the S&P 500 index. I don't see how total asset value ends up in the denominator? Another explanation is that VIX is
by marshray 9y ago
VIX measures the risk premium on options on the S&P 500 index. I don't see how total asset value ends up in the denominator?
Another explanation is that VIX is being actively dampened by the growing popularity of the 'short volatility' trade. E.g., the SVXY ETF among others. We're seeing today just how volatile volatility can be!