'VIX Options Are Simply Broken': Nomura Questions Dealers' Positioning Versus "Economic Landing Path" Tensions

As the market takes a breather from yesterday's "tilting towards growth scare" carnage, we take a brief moment to survey the damage and consider (based on historical precedent) what happens next - strategically and more importantly tactically.

vix options are simply broken nomura questions dealers positioning versus economic landing path tensions

Specifically, as Bloomberg's macro strategist Simon White notes, shorts that had built up in the VIX look like they were covered Tuesday as the manufacturing ISM data re-fed the hard-landing narrative.

via September 4th 2024