Bloomberg – One of the surest bets in the U.S. stock market over the last 2 1/2 years, speculating on tranquility, is being abandoned.
For the first time since 2011, the balance of futures (VIX) owned by hedge funds and other large speculators on the Chicago Board Options Exchange Volatility Index represents wagers that equity turbulence will increase, according to data compiled by the Commodity Futures Trading Commission. Managers added long holdings after a selloff that sent the Standard & Poor’s 500 Index down as much as 9.8 percent in the 26 days ended Oct. 15.
