# Negative Beta And VIX / GME

| Author       | Source       | 
| :-------------: |:-------------:|
| [u/Kikanbase](https://www.reddit.com/user/Kikanbase/)| [Reddit](https://www.reddit.com/r/Superstonk/comments/mnh49k/negative_beta_and_vix_gme/) | 

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Good morning my fellow Apes. I just woke up and decided to open Twitter and see what miss Alexis Goldstein had to say and boy did I like what I read.

https://twitter.com/alexisgoldstein/status/1380378197464858628?s=21

What does this have to do with GME you say?

I will try to make it short and sweet.

Someone is betting the VIX will go up soon! (Catching on yet?)

On Thursday there was a $40 million bet against the market using VIX.

“The VIX closed at 16.95 on Thursday, its lowest close since February 20, 2020, just before the coronavirus pandemic spooked investors and roiled global financial markets. “

“Given that big rallies in the options-based index tend to come during turbulent periods for stocks, the trade could represent a bearish outlook for equities.

The S&P 500 closed at a record high on Thursday helped by a rise in technology and other growth stocks.” -

Source Reuters

https://www.reuters.com/article/us-usa-stocks-options-vix-idUKKBN2BV37U

Last I checked (today in bed) the SP has a strong bearish divergence all indicators points to it going down. (I’m a dum ape and idk how to post a picture of the divergence on my phone) . Price keeps going up with lower volume and MACD going down.

Now what is VIX?

Well it’s the Volatility Index on the market.

“The Volatility Index, or VIX, measures volatility in the stock market. When the VIX is low, volatility is low. When the VIX is high volatility is high, which is usually accompanied by market fear.”

“If the VIX is high, it's time to buy" tells us that market participants are too bearish and implied volatility has reached capacity. This means the market will likely turn bullish and implied volatility will likely move back toward the mean. The optimal option strategy is to be delta positive and vega negative; i.e., short puts would be the best strategy. Delta positive simply means that as stock prices rise so too does the option price, while negative vega translates into a position that benefits from falling implied volatility.”

"When the VIX is low, look out below!" tells us that the market is about to fall and that implied volatility is going to ramp up. When implied volatility is expected to rise, an optimal bearish options strategy is to be delta negative and vega positive”

Bearish strategy is to be DELTA NEGATIVE!

Source Investopedia

https://www.investopedia.com/articles/optioninvestor/09/implied-volatility-contrary-indicator.asp

Now what is GME current negative beta? Well that answer depends wether or not you trust Bloomberg terminal. Some say -8 and up to -24!? And recent -36??? Wth

https://www.reddit.com/r/GME/comments/m6mje0/gme_beta_from_bloomberg_and_ownership_update/?utm_source=share&utm_medium=mweb

https://www.reddit.com/r/GME/comments/mfhszf/gme_adjusted_beta_23735_bloomberg_terminal/?utm_source=share&utm_medium=mweb

GME go BRRRRRRRR when VIX goes up! IM JACKED TO THE TITS!

With all the positive news on GME 4/20 and 6/9, you know what I mean.

It all correlates within the time frame of the VIX bet. If anything MB is right and this should bring down more than just the market because it correlates to everything else as well!

https://www.reddit.com/r/DeepFuckingValue/comments/mn9j91/michael_brrrrrrry_warnings_of_the_upcoming_market/?utm_source=share&utm_medium=ios_app&utm_name=iossmf

TLDR; Million dollar bets on VIX going up soon. VIX goes up GME go BRRRR due to high negative beta. 🍌🍌🍌🍌🍌🦍🦍🦍🦍🦍👐💎👐💎🚀🚀🚀🚀🚀🚀🚀🚀 Thanks for coming to my Ted talk.

Disclaimer

I do not provide personal investment advice and I am not a qualified licensed investment advisor. I am an amateur investor. All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice.
