Tuesday, December 16, 2014

Zerohedge's "broken VIX" disinformation campaign, paid for by Pooty-Poot


Zerohedge - broken VIX means markets getting scared, Group One says. Quote:
Inputs to the calculation are going skewy on the VIX in the past couple days because "safety parameters are set to hair triggers" and market makers are going wide more often than not, Group One Trading’s Dominic Salvino said.
But, wonder of wonders, I googled the supposed "Bloomberg report" and found utterly nothing.

But then I found this:

CNBC - why the VIX went haywire and how it was fixed. Quote:
The issue, according to the CBOE, derived from the way the VIX equation collects options quotes. The CBOE takes the bid and ask price of every option (that is, the price at which market makers are willing to buy and sell each option) and finds the average. For instance, if the bid price is 10 cents, and the ask price is 30 cents, the "true" options price will be considered to be 20 cents.

However, what began to happen is that the bid/ask spreads on those S&P options started to widen vociferously and sporadically. Generally, the ask price (the price at which the market maker offers to sell that option to traders) was rising, while the bid price (the price at which the market maker is willing to buy the option) stayed the same.
But of course CNBC is nothing but Zionist American propaganda while Zerohedge gets all its news (and reputation) (and funding) from RT and the Russians.

You choose what's true! Because truth is something you can decide for yourself without bothering to check reality!

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