VIX FIX: The Volatility Event No One Saw Coming   Volatility jolted from its long slumber Tuesday night after a jaw-dropping win in the U.S. Presidential election by Donald Trump. Global markets were reacting to the surprise as state by state results came in, causing Dow futures to plunge approximately 750 points at one point during the night, while the CBOE Volatility Index (VIX Index) soared 55%, topping the 23 mark.

dsc_0368-640x310VIX futures contracts also made history, setting a new volume record of 263,663 contracts during non-U.S. trading hours.  This surpassed the previous record of 255,141 contracts on June 24, which was the night of  the U.K.’s  Brexit vote.  Also on November 9, S&P 500 Index (SPX) options and VIX options combined set a new record in non-U.S trading hours with 108,015 contracts traded.  This total included a record 41,218 contracts in SPX options (including SPX Weeklys).

As the week progressed, investors began to digest the election night surprise, and markets rebounded, sending the Dow Jones to record highs on Thursday. While businesses globally speculate on just what a Trump presidency means for the next four years, it’s safe to say that  volatile markets may  be on the agenda during  the famed “first 100 days.”

“How to Play a Volatility Spike” – Bill Luby, Barron’s

“Upsurge in CFE, CBOE VIX ETH Volume, Liquidity set to Increase” – Georgia Reynolds, EQ Derivatives

“VIX Sets New Record with Nine up Days in a Row” – Bill Luby, VIX and More

“Trump Win Could Catapult VIX 60% Higher” – Chris Dieterich, Wall Street Journal

“VIX Climbs on Election Day Jitters” – Asjylyn Loder, Wall Street Journal

“If you Like Market Volatility, you’re Going to Love the Next President” – Jason Gewirtz,

“A Stock Market Stress Indicator Starts to Look Ominous Ahead of Election” – Ben Eisen, Wall Street Journal

“Don’t Worry When the Stock Market goes Crazy after Election” – Oliver Renick, Bloomberg

“Heard on the Street: Investors Get the Election Jitters” – Justin Lahart, Wall Street Journal

“Investor Angst Ratchets up as Election Nears” – Nick Timiraos, Wall Street Journal

“VIX: Fear Gauge or Election Protection?” –Peter Tchir, Forbes

“Volatility Shorts Cash in Despite Shock U.S. Election” – Saqib Iqbal Ahmed, Reuters

“Trump Presidential Victory has Wall Street’s ‘Fear Gauge’ Jumping – Mark Decambre, Market Watch

“Volatility Update: Time to Wake Up? Rising Risk Perceptions” – Frederic Ruffy, The Ticker Tape