16min chapter

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Value After Hours S06 E08: Vixologist Jim Carroll on the VIX, vol, 0DTE options and Burgelman's Trap

The Acquirers Podcast

CHAPTER

Navigating the Complexities of VIX Futures and Options

The chapter explores the challenges and dynamics of trading VIX futures and options, focusing on zero-day options and their impact on the VIX calculation. It discusses the shift towards shorter expiry periods and how dealers hedge their exposure using short-term options, touching on the market impact of unwinding these hedges at expiry. The conversation also delves into the potential market disruptions caused by derivative instruments like the VIX, reflecting on historical trends of the Fed cutting rates in response to economic distress.

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