Quote Originally Posted by Billy View Post
Exactly ! You found the perfect wording for what I was trying to convey. Now, it could even become worst than that if they are simply net short and hedging with calls rather than with puts since the VIX only tracks put options volatility.
And cheers for your baby!
Billy
fascinating conclusion for whats going on under the surface, never seen it from that point of view.

as far as i got the VIX calculation, it uses both, nearterm puts and calls.
if net shorts would hedge with calls, then the call side should add to the calculation similar in VIX direction than puts for long protection, so the VIX should rise again?
am i missing here something on the put side?