CBOE RMC: More Short Volatility Positions Need To Unwind

The Feb. 5 volatility spike marked the bursting of the Cboe Volatility Index exchange-traded product bubble, but the larger short-volatility bubble has yet to burst, according to Nitin Saksena, head of U.S. equity derivatives research at Bank of America Merrill Lynch. The market has not yet moved into a high volatility regime, which would mark the end of the short vol trade, Saksena said, speaking at this year’s Cboe Global Markets Risk Management Conference in Bonita Springs, FL.