Selvala: Inverse VIX ETNs exacerbated the February 2018 volatility spike
Rick Selvala · Rick Selvala - Harvesting Volatility (Capital Allocators, EP.41) · Feb 26, 2018 · at 42:01
Rick Selvala, CEO of Harvest Volatility Management, explains the structural market mechanics behind the February 2018 'Volmageddon' event.
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“In this case, the VIX spike that we saw on the, you know, towards the close of the fifth and the opening on February six was exacerbated by these inverse VIX ETNs that a lot of people were sort of getting into because they looked really good for a long period of time, and then they, you know, they blew up, and when they blew up, it required a ton of VIX futures buying”
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