Wall Street's Fear Gauge Is Ripping. Traders See It Going Even Higher

The sell-off in AI-related stocks pushed the VIX above 22 for the first time in four months. A cluster of trades suggests it could go even higher.

Wall Street's Fear Gauge Is Ripping. Traders See It Going Even Higher

TL;DR

  • The VIX exceeded 22, its highest level in four months, due to a sell-off in AI stocks.
  • Traders are making substantial bets on VIX calls, anticipating continued elevated volatility through November.
  • The Nasdaq experienced its worst day since June 5th, with CoreWeave seeing a 13% drop.
  • A significant portion of VIX options premium traded on Friday was in call contracts, with strikes above the current VIX level.
  • Upcoming earnings reports from Tesla, SpaceX, and Meta are viewed as a key market test.

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