UVIX is trading 3.2% down as front-month VIX futures retreat following a sharp but orderly Fed-driven selloff in equities.
- Markets appear to be stabilizing after the Federal Reserve held interest rates unchanged, leading to an unwinding of long-volatility positions and pressure on leveraged VIX products.
- While geopolitical tensions and higher oil prices keep risk premia elevated, the immediate post-Fed stabilization has reduced the demand for 2x leveraged volatility exposure.