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.
-
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.
**Higher VIX generally means wider spreads which means more ANTI per day for equity market makers
-
-
This is like saying Virtu daily stock price should be correlated with their daily revenues. I understand we can observe the correlation with contemporaneous VIX in the past but it's not a particularly rational relationship, so can break easily
-
Plus Virtu has bought back 25%? of their shares and has further materialized merger related efficiencies. It’s just not the same company as when it was trading mid-teens last time.
- Show replies
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.