The recent downturn in the market, coupled with the surge of VIX instrument users, has motivated me to conduct research into what is causing people to behave in such an irrational manner. Despite the irrefutible evidence, empirical in nature, stating that 99.9% of VIX trades will result in horrendous capital losses, I took it upon myself to understand why the Twitter, the Stocktwits, and The iBankCoin comments section was littered with ‘kamikaze’ styled traders who believed ‘this time would be different.’
Without further delay, I am proud to announce my findings.
At first I thought there was a chemical imbalance in the brain that led to irrational behavior. I examined levels of serotonin in my subjects (do not concern yourself, I am a Doctor); but this study proved to be inconclusive. I then experimented with electric pulses and the “amygdala” part of the brain, the part responsible for fear. Regrettably, our research ran into significant road-blocks here too.
We then experimented with neurotransmitters and became emboldened by our findings.
In 97% of our subjects, persons exhibiting ‘acute mental disorders’ emanating from a malady in the pre-frontal cortex, we found they executed VIX instrument product trades when left to their own volition–despite empirical evidence stating this was detrimental to their financial well-being.
What does this mean?
This means, through proper surgical means and partial removal of this part of the brain, the subject may, at some point in time, lead a normal life. Naturally, of course, our research is in its nascency and there are aspects of this illness that we are becoming acquainted with each and every day. But, I am pleased to inform you that electro-shock therapy is no longer needed as treatment and we are now on the cusp of revolutionary, break-through, treatments–that will benefit the good of mankind for centuries to come.
Dr. Fly, 2014.
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Frankly good Dr., I am shocked that subjects who executed VIX instrument product trades were found to have any evidence of a pre-frontal cortex whatsoever. It was our assumption these individuals possessed only the most primitive portion of the brain, aka the brain stem.
Your findings are very interesting indeud.
We will know more after further inspection.
Dr. Cotton?
F.E.A.R. = False Evidence Appearing Real
Fnck everything and run.
LOL I guess it really is that easy, the bounce that is. It’s going to lead to an awesome AMZN put setup. 😀 😀 😀
Dr. Fly – What about the Medulla Oblongata? http://youtu.be/eOsvng4QwG8
Sethster for Prez 2016!!
Fascinating study, Dr. Fly. I wonder what percent of those infected plan to again don the feces-smeared rubber boots of the hog farmer after the bust-o moment?
Thank you. I am happy to share our research.
Given your Knick header, have you checked out Banshee yet, Dr. Fly?
Nope
People can remain insane longer than I might be able to remain solvent. You never know how long it will take for cooler heads to prevail.
Jesus.
Where did all this benevolence come from? Let these stupid fucks die if they believe buying Vol works.
Video evidence……….
https://www.youtube.com/watch?v=Nj6yap-O754&list=UU83RU3yDhHwzG9d9LD1x5yQ
Motherfucker damn near sold the LOW….and got his face ripped off……….
where was it friday? after being down almost 50%?
bout even…..
never buy vol.
short the XIV or the SVXY…..get the roll in your favor.
fuck. you wanna play the lotto, then play the fucking lotto and get the fuck out of the stock market.
you’re odds will be better.
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… on the anniversary of the 508 point DOW decline …
… Manning throws number 509 to tie Favre’s TD pass record !
.
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… 509 actually BREAKS Favre’s record of 508 !
—–
A-game !!!
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BTW … HOW BOUT THEM COWBOYS !!!
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Fuck Texas damn it !!!
😉
Curious, but do most readers of the site not trade any volatility product(s)? I’ve had great success in both trading XIV, and using it as an input for quantitative models.
Why XIV as input instead of standard VIX?
Depends. But, in most cases, because you can trade XIV outright (whereas VIX cannot actually be traded).
These products should not be held overnight ever. The decay on these is criminal.
XIV is inverse, so in most cases, the decay works in your favor.
Godzilla taking back 15k has a feeding tube feel. Germania 9k tomorrow? Uncle Sam 1900? Nice round numbers all around.
The problem is the new buyer. Who the fuck is going to buy that has not already? The feeding tube is almost out of cocks for Mr Market to blow. We need more coke.