{"id":199426,"date":"2023-11-27T12:40:44","date_gmt":"2023-11-27T17:40:44","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=199426"},"modified":"2023-11-28T12:12:03","modified_gmt":"2023-11-28T17:12:03","slug":"has-volatility-been-permanently-subdued","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/options\/has-volatility-been-permanently-subdued\/","title":{"rendered":"Has Volatility Been Permanently Subdued?"},"content":{"rendered":"\n<p>For veteran options pros, it seems strange to see VIX (Cboe Volatility Index) mired in the 12-13 range.&nbsp; Sure, investors are in a buoyant mood, which would reduce their desire to seek volatility protection, but there have been plenty of periods in recent years when investors have been sanguine while VIX traded at higher levels.&nbsp; At the risk of invoking the most dangerous phrase for investors, what might be different this time?<\/p>\n\n\n\n<p>As we have noted on <a href=\"\/campus\/traders-insight\/securities\/macro\/vix-is-not-now-nor-has-it-ever-been-the-fear-index\/\">several occasions<\/a>, VIX is not a fear gauge \u2013 it just plays one on TV.&nbsp; <a href=\"https:\/\/www.cboe.com\/tradable_products\/vix\/faqs\/\">It is constructed<\/a> to measure the market\u2019s best estimate of volatility over the coming 30 days. &nbsp;Of course, nervous traders tend to anticipate higher volatility than calmer ones, so there is indeed a decent correlation between fear and VIX, but it is hardly the only explanatory factor.&nbsp; Recency bias plays a role.&nbsp; If markets are not particularly volatile, it is human nature to anticipate that those conditions are likely to persist in the coming days and weeks.&nbsp; But other specific factors have come into play.<\/p>\n\n\n\n<p>It is also important that the VIX calculation utilizes all S&amp;P 500 (SPX) options \u2013 puts and calls &#8211; with 23-37 days to expiration and bids of a penny or more.\u00a0 If the implied volatilities of calls are depressed, that has an effect on VIX.\u00a0\u00a0 Recently, we have seen a rise in ETFs that employ strategies that involve selling volatility.\u00a0 Those include JEPI, XYLD, QYLD, PBP, and a host of others.\u00a0 While they tend to employ the relatively benign strategy of writing covered calls, those calls have to be bought by someone.\u00a0 And if enough of those calls persistently enter the market on a regular basis, the traders who buy those calls know to adjust their prices lower.\u00a0<\/p>\n\n\n\n<p>Another factor is whether <a href=\"\/campus\/traders-insight\/might-correlation-be-the-key-to-understanding-vix\/\">correlations of the stocks<\/a> within SPX are relatively high or low.&nbsp; If stocks are moving in synch, then index volatilities tend to rise.&nbsp; If not, the index movement is dampened. Think of it this way: suppose you have a two-stock index.&nbsp; If stock A goes up while stock B goes down by a similar amount, the overall index remains relatively unchanged \u2013 even if the individual stock moves are substantial.&nbsp; Yet if they move in the same direction &#8212; up or down \u2013 so will that index.&nbsp; By extension, if the components in SPX or any other index move in the same direction with a high correlation, then its volatility will be higher.&nbsp; The opposite is of course true if there is dispersion in the components\u2019 returns.<\/p>\n\n\n\n<p>It is important to remember that even though volatility calculations don\u2019t consider the direction of the movement in the underlying stock or index, people do.&nbsp; We have raised the concept of \u201c<a href=\"\/campus\/traders-insight\/securities\/macro\/socially-acceptable-volatility\/\">socially acceptable volatility<\/a>\u201d several times.&nbsp; In short, people like it when markets go up.&nbsp; <a href=\"\/campus\/traders-insight\/securities\/stocks\/the-asymmetries-of-fear-greed-and-monetary-policy\/\">That\u2019s why they\u2019re invested<\/a> in the first place, and over time, stock markets have tended to go up.&nbsp; Investors don\u2019t like it when markets go down.&nbsp; That causes nervous traders to seek volatility protection, which tends to boost VIX.&nbsp; We have all recognized the asymmetry of VIX\u2019 response to up and down moves.&nbsp; This is the underlying reason.&nbsp;<\/p>\n\n\n\n<p>The correlation, or lack thereof, is an important consideration for VIX right now.&nbsp; In this case we have utilized the Cboe\u2019s 1-Month Implied Correlation Index (COR1M) as we have done before. <a href=\"\/campus\/traders-insight\/securities\/stocks\/complacency-or-correlation\/\">In September, we noted<\/a> that VIX had sunk disproportionately to COR1M.&nbsp; A few days after writing that piece, VIX rose sharply to the high teens toward 20.&nbsp; We see a similar situation once again:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-year-line-chart-vix-red-vs-cor1m-white\">1<strong><em>-Year Line Chart, VIX (red) vs. COR1M (white)<\/em><\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"776\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/Picture2-3-1100x776.png\" alt=\"1-Year Line Chart, VIX (red) vs. COR1M (white)\" class=\"wp-image-199429 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/Picture2-3-1100x776.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/Picture2-3-700x494.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/Picture2-3-300x212.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/Picture2-3-768x542.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/Picture2-3.png 1398w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/776;\" \/><\/figure>\n\n\n\n<p>Source: Bloomberg<\/p>\n\n\n\n<p>In the chart above, note how VIX has plunged even as COR1M has not.&nbsp; That was the situation in September as well.&nbsp; A scatterplot shows that there is a reasonably solid relationship between COR1M and VIX, yet the current data point is at near the lowest levels seen over the past two years:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-regression-analysis-2-years-with-cor1m-as-the-independent-variable-and-vix-as-the-dependent-variable\"><em><strong>Regression Analysis, 2 Years, with COR1M as the Independent Variable and VIX as the Dependent Variable<\/strong><\/em><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"598\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/Picture1-9-1100x598.png\" alt=\"Regression Analysis, 2 Years, with COR1M as the Independent Variable and VIX as the Dependent Variable\" class=\"wp-image-199428 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/Picture1-9-1100x598.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/Picture1-9-700x381.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/Picture1-9-300x163.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/Picture1-9-768x418.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/Picture1-9.png 1398w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/598;\" \/><\/figure>\n\n\n\n<p>Source: Bloomberg<\/p>\n\n\n\n<p>Bottom line: traders seem quite sanguine at present, and not actively seeking volatility protection at current levels.&nbsp; But it is quite possible that the current level of VIX is too depressed compared to the correlation of its components, with mechanical selling by ETFs as a contributing factor.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors are in a buoyant mood, which would reduce their desire to seek volatility protection, but there have been plenty of periods in recent years when investors have been sanguine while VIX traded at higher levels.  At the risk of invoking the most dangerous phrase for investors, what might be different this time?<\/p>\n","protected":false},"author":4,"featured_media":195959,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14700,6,19,8,9,22,26,3],"tags":[207,317,860],"contributors-categories":[13576],"class_list":{"0":"post-199426","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ibkr-market-insights","8":"category-north-america","9":"category-options","10":"category-region","11":"category-securities","12":"category-stocks","13":"category-text-articles","14":"category-traders-insight","15":"tag-spx","16":"tag-vix","17":"tag-volatility","18":"contributors-categories-interactive-brokers"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Has Volatility Been Permanently Subdued? | Traders&#039; Insight<\/title>\n<meta name=\"description\" content=\"Investors are in a buoyant mood, which would reduce their desire to seek volatility protection, but there have been plenty of periods in recent years...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/199426\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Has Volatility Been Permanently Subdued? | IBKR Campus US\" \/>\n<meta property=\"og:description\" content=\"Investors are in a buoyant mood, which would reduce their desire to seek volatility protection, but there have been plenty of periods in recent years when investors have been sanguine while VIX traded at higher levels. At the risk of invoking the most dangerous phrase for investors, what might be different this time?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/has-volatility-been-permanently-subdued\/\" \/>\n<meta property=\"og:site_name\" content=\"IBKR Campus US\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-27T17:40:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-28T17:12:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/09\/vix-volatility-featured-img.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"563\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Steve Sosnick\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Steve Sosnick\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": \"https:\\\/\\\/schema.org\",\n\t    \"@graph\": [\n\t        {\n\t            \"@type\": \"NewsArticle\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/has-volatility-been-permanently-subdued\\\/#article\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/has-volatility-been-permanently-subdued\\\/\"\n\t            },\n\t            \"author\": {\n\t                \"name\": \"Steve Sosnick\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/person\\\/31988d9596575a63ddc53e92049a2549\"\n\t            },\n\t            \"headline\": \"Has Volatility Been Permanently Subdued?\",\n\t            \"datePublished\": \"2023-11-27T17:40:44+00:00\",\n\t            \"dateModified\": \"2023-11-28T17:12:03+00:00\",\n\t            \"mainEntityOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/has-volatility-been-permanently-subdued\\\/\"\n\t            },\n\t            \"wordCount\": 760,\n\t            \"commentCount\": 4,\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/has-volatility-been-permanently-subdued\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2023\\\/09\\\/vix-volatility-featured-img.jpg\",\n\t            \"keywords\": [\n\t                \"SPX\",\n\t                \"VIX\",\n\t                \"volatility\"\n\t            ],\n\t            \"articleSection\": [\n\t                \"IBKR Insights\",\n\t                \"North America\",\n\t                \"Options\",\n\t                \"Region\",\n\t                \"Securities\",\n\t                \"Stocks\",\n\t                \"Text Articles\",\n\t                \"Traders' Insight\"\n\t            ],\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"CommentAction\",\n\t                    \"name\": \"Comment\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/has-volatility-been-permanently-subdued\\\/#respond\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"WebPage\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/has-volatility-been-permanently-subdued\\\/\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/has-volatility-been-permanently-subdued\\\/\",\n\t            \"name\": \"Has Volatility Been Permanently Subdued? | IBKR Campus US\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\"\n\t            },\n\t            \"primaryImageOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/has-volatility-been-permanently-subdued\\\/#primaryimage\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/has-volatility-been-permanently-subdued\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2023\\\/09\\\/vix-volatility-featured-img.jpg\",\n\t            \"datePublished\": \"2023-11-27T17:40:44+00:00\",\n\t            \"dateModified\": \"2023-11-28T17:12:03+00:00\",\n\t            \"description\": \"Investors are in a buoyant mood, which would reduce their desire to seek volatility protection, but there have been plenty of periods in recent years when investors have been sanguine while VIX traded at higher levels. At the risk of invoking the most dangerous phrase for investors, what might be different this time?\",\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"ReadAction\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/has-volatility-been-permanently-subdued\\\/\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"ImageObject\",\n\t            \"inLanguage\": \"en-US\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/has-volatility-been-permanently-subdued\\\/#primaryimage\",\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2023\\\/09\\\/vix-volatility-featured-img.jpg\",\n\t            \"contentUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2023\\\/09\\\/vix-volatility-featured-img.jpg\",\n\t            \"width\": 1000,\n\t            \"height\": 563\n\t        },\n\t        {\n\t            \"@type\": \"WebSite\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/\",\n\t            \"name\": \"IBKR Campus US\",\n\t            \"description\": \"Financial Education from Interactive Brokers\",\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\"\n\t            },\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"SearchAction\",\n\t                    \"target\": {\n\t                        \"@type\": \"EntryPoint\",\n\t                        \"urlTemplate\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/?s={search_term_string}\"\n\t                    },\n\t                    \"query-input\": {\n\t                        \"@type\": \"PropertyValueSpecification\",\n\t                        \"valueRequired\": true,\n\t                        \"valueName\": \"search_term_string\"\n\t                    }\n\t                }\n\t            ],\n\t            \"inLanguage\": \"en-US\"\n\t        },\n\t        {\n\t            \"@type\": \"Organization\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\",\n\t            \"name\": \"Interactive Brokers\",\n\t            \"alternateName\": \"IBKR\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/\",\n\t            \"logo\": {\n\t                \"@type\": \"ImageObject\",\n\t                \"inLanguage\": \"en-US\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/logo\\\/image\\\/\",\n\t                \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/05\\\/ibkr-campus-logo.jpg\",\n\t                \"contentUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/05\\\/ibkr-campus-logo.jpg\",\n\t                \"width\": 669,\n\t                \"height\": 669,\n\t                \"caption\": \"Interactive Brokers\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/logo\\\/image\\\/\"\n\t            },\n\t            \"publishingPrinciples\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/about-ibkr-campus\\\/\",\n\t            \"ethicsPolicy\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/cyber-security-notice\\\/\"\n\t        },\n\t        {\n\t            \"@type\": \"Person\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/person\\\/31988d9596575a63ddc53e92049a2549\",\n\t            \"name\": \"Steve Sosnick\",\n\t            \"description\": \"Steve is the Chief Strategist at Interactive Brokers. He has held numerous roles in the organization since joining Timber Hill, IBKR\u2019s predecessor, in 1995 as Equity Risk Manager and an options market maker. He developed and implemented automated trading strategies for stocks and options before moving into his current role. Steve has guest authored several columns in Barron\u2019s and made numerous live on Bloomberg TV and Radio, CNBC, Yahoo Finance, Fox Business, and several other media outlets in North America, Asia, Australia, and the Middle East in addition to being quoted frequently in print and electronic media. Prior to joining Interactive Brokers, Sosnick held senior trading roles at Morgan Stanley, Lehman Brothers, and Salomon Brothers, where he completed the firm\u2019s famed training program.\",\n\t            \"sameAs\": [\n\t                \"https:\\\/\\\/ibkr.com\"\n\t            ],\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/author\\\/steve-sosnick\\\/\"\n\t        }\n\t    ]\n\t}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Has Volatility Been Permanently Subdued? | Traders' Insight","description":"Investors are in a buoyant mood, which would reduce their desire to seek volatility protection, but there have been plenty of periods in recent years...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/199426\/","og_locale":"en_US","og_type":"article","og_title":"Has Volatility Been Permanently Subdued? | IBKR Campus US","og_description":"Investors are in a buoyant mood, which would reduce their desire to seek volatility protection, but there have been plenty of periods in recent years when investors have been sanguine while VIX traded at higher levels. At the risk of invoking the most dangerous phrase for investors, what might be different this time?","og_url":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/has-volatility-been-permanently-subdued\/","og_site_name":"IBKR Campus US","article_published_time":"2023-11-27T17:40:44+00:00","article_modified_time":"2023-11-28T17:12:03+00:00","og_image":[{"width":1000,"height":563,"url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/09\/vix-volatility-featured-img.jpg","type":"image\/jpeg"}],"author":"Steve Sosnick","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Steve Sosnick","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"NewsArticle","@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/has-volatility-been-permanently-subdued\/#article","isPartOf":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/has-volatility-been-permanently-subdued\/"},"author":{"name":"Steve Sosnick","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/person\/31988d9596575a63ddc53e92049a2549"},"headline":"Has Volatility Been Permanently Subdued?","datePublished":"2023-11-27T17:40:44+00:00","dateModified":"2023-11-28T17:12:03+00:00","mainEntityOfPage":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/has-volatility-been-permanently-subdued\/"},"wordCount":760,"commentCount":4,"publisher":{"@id":"https:\/\/ibkrcampus.com\/campus\/#organization"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/has-volatility-been-permanently-subdued\/#primaryimage"},"thumbnailUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/09\/vix-volatility-featured-img.jpg","keywords":["SPX","VIX","volatility"],"articleSection":["IBKR Insights","North America","Options","Region","Securities","Stocks","Text Articles","Traders' Insight"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ibkrcampus.com\/campus\/traders-insight\/has-volatility-been-permanently-subdued\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/has-volatility-been-permanently-subdued\/","url":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/has-volatility-been-permanently-subdued\/","name":"Has Volatility Been Permanently Subdued? | IBKR Campus US","isPartOf":{"@id":"https:\/\/ibkrcampus.com\/campus\/#website"},"primaryImageOfPage":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/has-volatility-been-permanently-subdued\/#primaryimage"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/has-volatility-been-permanently-subdued\/#primaryimage"},"thumbnailUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/09\/vix-volatility-featured-img.jpg","datePublished":"2023-11-27T17:40:44+00:00","dateModified":"2023-11-28T17:12:03+00:00","description":"Investors are in a buoyant mood, which would reduce their desire to seek volatility protection, but there have been plenty of periods in recent years when investors have been sanguine while VIX traded at higher levels. At the risk of invoking the most dangerous phrase for investors, what might be different this time?","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ibkrcampus.com\/campus\/traders-insight\/has-volatility-been-permanently-subdued\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/has-volatility-been-permanently-subdued\/#primaryimage","url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/09\/vix-volatility-featured-img.jpg","contentUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/09\/vix-volatility-featured-img.jpg","width":1000,"height":563},{"@type":"WebSite","@id":"https:\/\/ibkrcampus.com\/campus\/#website","url":"https:\/\/ibkrcampus.com\/campus\/","name":"IBKR Campus US","description":"Financial Education from Interactive Brokers","publisher":{"@id":"https:\/\/ibkrcampus.com\/campus\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ibkrcampus.com\/campus\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ibkrcampus.com\/campus\/#organization","name":"Interactive Brokers","alternateName":"IBKR","url":"https:\/\/ibkrcampus.com\/campus\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/logo\/image\/","url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/ibkr-campus-logo.jpg","contentUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/ibkr-campus-logo.jpg","width":669,"height":669,"caption":"Interactive Brokers"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/logo\/image\/"},"publishingPrinciples":"https:\/\/www.interactivebrokers.com\/campus\/about-ibkr-campus\/","ethicsPolicy":"https:\/\/www.interactivebrokers.com\/campus\/cyber-security-notice\/"},{"@type":"Person","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/person\/31988d9596575a63ddc53e92049a2549","name":"Steve Sosnick","description":"Steve is the Chief Strategist at Interactive Brokers. He has held numerous roles in the organization since joining Timber Hill, IBKR\u2019s predecessor, in 1995 as Equity Risk Manager and an options market maker. He developed and implemented automated trading strategies for stocks and options before moving into his current role. Steve has guest authored several columns in Barron\u2019s and made numerous live on Bloomberg TV and Radio, CNBC, Yahoo Finance, Fox Business, and several other media outlets in North America, Asia, Australia, and the Middle East in addition to being quoted frequently in print and electronic media. Prior to joining Interactive Brokers, Sosnick held senior trading roles at Morgan Stanley, Lehman Brothers, and Salomon Brothers, where he completed the firm\u2019s famed training program.","sameAs":["https:\/\/ibkr.com"],"url":"https:\/\/www.interactivebrokers.com\/campus\/author\/steve-sosnick\/"}]}},"jetpack_featured_media_url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/09\/vix-volatility-featured-img.jpg","_links":{"self":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts\/199426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/comments?post=199426"}],"version-history":[{"count":0,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts\/199426\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/media\/195959"}],"wp:attachment":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/media?parent=199426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/categories?post=199426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/tags?post=199426"},{"taxonomy":"contributors-categories","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/contributors-categories?post=199426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}