The instability appears to have passed. I didn’t go long vol, although I had rebalanced early to reduce some dangerous exposure and reduced my usual small short vol position. I’ve now restored my usual short vol position. It could be months before we see a blip like this again.
It’s a day later, and I’m seeing it again, but barely. I want to see if it persists a while before acting so I don’t get whipsawed.
The instability appears to have passed. I didn’t go long vol, although I had rebalanced early to reduce some dangerous exposure and reduced my usual small short vol position. I’ve now restored my usual short vol position. It could be months before we see a blip like this again.