VIX & GME CONNECTION
====================

| Author       | Source       | 
| :-------------: |:-------------:|
|  [u/eastzzz](https://www.reddit.com/user/eastzzz/) | [Reddit](https://www.reddit.com/r/GME/comments/mpt45u/vix_gme_connection/) | 

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[DD](https://www.reddit.com/r/GME/search?q=flair_name%3A%22DD%22&restrict_sr=1)

Evening my Apes! ~~I posted here because of Karma requirement on other sub, so if you could repost that'd be great.~~

As some of you may have seen, there was a post that came up April 8th where someone made a massive bet for VIX options, $25-40 call spread.

<https://www.reuters.com/article/usa-stocks-options-vix-idUSL1N2M138Z>

As per Investopedia: The Cboe Volatility Index (VIX) is a real-time [index](https://www.investopedia.com/terms/m/marketindex.asp) that represents the market's expectations for the relative strength of near-term price changes of the S&P 500 index (SPX). Because it is derived from the prices of SPX [index options](https://www.investopedia.com/terms/i/indexoption.asp) with near-term expiration dates, it generates a 30-day forward projection of [volatility](https://www.investopedia.com/terms/v/volatility.asp). Volatility, or how fast prices change, is often seen as a way to gauge market sentiment, and in particular the degree of fear among market participants

Knowing that GME has an extremely negative beta and reacts almost inversely to the markets, what do we expect to find?

[GME](https://preview.redd.it/wl09qfg0pus61.png?width=892&format=png&auto=webp&s=bf661c7c25ca8ad9fc6b51da2ddc7062376dced0)

[VIX](https://preview.redd.it/rkzjxp82pus61.png?width=991&format=png&auto=webp&s=a554b58d8660a8987dd57cb6266a370c9625f91a)

Comparing the two you can see they match up pretty well with near identical highs and lows, along with trend changes. Have another look at the MACD's:

[GME MACD](https://preview.redd.it/t8ueox05pus61.png?width=892&format=png&auto=webp&s=b6c5e9d41ccff698c5d1e54f53c145156551a1a2)

[VIX MACD](https://preview.redd.it/i4yg1y56pus61.png?width=991&format=png&auto=webp&s=4f8a6a67fca5ae9b42a32cdd2f2013cee521fe5b)

They pretty much mirror each other. So how this all ties up is that the calls that I mentioned earlier expiry by the end of July. Whoever made this bet fully expects VIX to moonshot, and given how intertwined they are, we can expect GME to also follow suit. There is speculation that this was done by none other than MB but thats tbd. All in all, just more confirmation bias for us Apes. Thanks for reading.

tldr: someone with $40million decides to buy calls on VIX, which trades like GME, expecting market to tank by end of July.
