Why should Virtu price depend on current level of (strongly mean reverting) VIX, as opposed to (if we want to proxy it by something) expectations of avg value of VIX for next N years?
New 52 week highs for $VIRT with the VIX at 19 is wild. The last time the VIX was this low Virtu was trading in the mid teens.
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Its a good point & I largely agree, it's just very hard to predict future volatility & in the past VIX dependent names like Virtu have correlated with spot VIX/near months of the VIX futures curve.
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Maybe related to Hwang blow up and bank losses, market is expecting / more fearful of future events like that which could lead to more chaos and be good for Virtu. It is interesting it's conflicting w VIX, which is implying lower futr variance, but vix impactd by othr factrs
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