RUSH TRANSCRIPT Vix elevated ░░░░░░░░ the day I m ░░░░░░░░ sure what the correlation ░░░░░░░░ anymore The vix is ░░░░░░░░ but it is not ░░░░░░░░ as much as the ░░░░░░░░ P 500 is down ░░░░░░░░ s having its biggest ░░░░░░░░ since August 26 The ░░░░░░░░ P 500 on the ░░░░░░░░ hand is down the ░░░░░░░░ since the end of ░░░░░░░░ That was true yesterday ░░░░░░░░ when they when we ░░░░░░░░ the vix higher Let ░░░░░░░░ bring in Kevin Kelly ░░░░░░░░ is going on with ░░░░░░░░ vix Your main point ░░░░░░░░ it is not fear ░░░░░░░░ is uncertainty The vix ░░░░░░░░ is an indicator of ░░░░░░░░ That is what you ░░░░░░░░ not seeing at spike ░░░░░░░░ significantly why you are ░░░░░░░░ seeing it spike pretty ░░░░░░░░ It is indicating a ░░░░░░░░ 625 percent daily move ░░░░░░░░ the next 30 days ░░░░░░░░ have seen that if ░░░░░░░░ look backwards for the ░░░░░░░░ 30 days right We ░░░░░░░░ seen these up and ░░░░░░░░ days It s been ░░░░░░░░ bound The vix is ░░░░░░░░ that Today s market ░░░░░░░░ is predicated on the ░░░░░░░░ that the market was ░░░░░░░░ in be conflation and ░░░░░░░░ be conflation theory is ░░░░░░░░ Caroline it certainly is ░░░░░░░░ At least right now ░░░░░░░░ is amazing how quickly ░░░░░░░░ narrative changes The S ░░░░░░░░ 500 still holding up ░░░░░░░░ the June low but ░░░░░░░░ will be interesting to ░░░░░░░░ how it goes The ░░░░░░░░ the vix is pricing ░░░░░░░░ can be up moved ░░░░░░░░ well The can be ░░░░░░░░ moved We have seen ░░░░░░░░ over the last several ░░░░░░░░ Today s move only ░░░░░░░░ out the last moves ░░░░░░░░ the upside Where have ░░░░░░░░ gone Really know where ░░░░░░░░ also incorporates a band ░░░░░░░░ movements on average the ░░░░░░░░ 30 days Let s ░░░░░░░░ about the spread It ░░░░░░░░ options expiration s but ░░░░░░░░ much of an influence ░░░░░░░░ that expiration on Friday ░░░░░░░░ the for the rally ░░░░░░░░ today It is going ░░░░░░░░ be a big impact ░░░░░░░░ into options expiration and ░░░░░░░░ action several days afterward ░░░░░░░░ industry participants call it ░░░░░░░░ which and because there ░░░░░░░░ the index rebalancing as ░░░░░░░░ which could impact moves ░░░░░░░░ way or another because ░░░░░░░░ of these top constituents ░░░░░░░░ moves significantly downward Think ░░░░░░░░ nvidia There s a ░░░░░░░░ lower in portfolio that ░░░░░░░░ exacerbate portfolio moves It ░░░░░░░░ done it to the ░░░░░░░░ and the downside due ░░░░░░░░ the action we are ░░░░░░░░ today We have the ░░░░░░░░ year mortgage rate basically ░░░░░░░░ levels not seen last ░░░░░░░░ during the financial bubble ░░░░░░░░ housing bubble excuse me ░░░░░░░░ of course has the ░░░░░░░░ stocks down sharply What ░░░░░░░░ that tell you in ░░░░░░░░ of the volatility If ░░░░░░░░ look at the three ░░░░░░░░ vix it is not ░░░░░░░░ either It would take ░░░░░░░░ step back and look ░░░░░░░░ what was one of ░░░░░░░░ biggest indicators today and ░░░░░░░░ inflation move that was ░░░░░░░░ the shelter cost the ░░░░░░░░ change since January of ░░░░░░░░ You are also seeing ░░░░░░░░ month before with half ░░░░░░░░ percent Housing is getting ░░░░░░░░ expensive 14 year has ░░░░░░░░ the 30 year mortgage ░░░░░░░░ way that we can ░░░░░░░░ that type of inflation ░░░░░░░░ something the Fed can ░░░░░░░░ That is by raising ░░░░░░░░ That is why you ░░░░░░░░ seeing 100 basis points ░░░░░░░░ factored in now to ░░░░░░░░ tune of even 30 ░░░░░░░░ need to get housing ░░░░░░░░ control because it is ░░░░░░░░ very expensive Rents are ░░░░░░░░ even close to what ░░░░░░░░ cost of housing is ░░░░░░░░ tuned more volatility ahead ░░░░░░░░ Kelly thank you for ░░░░░░░░ us for options insight ░░░░░░░░ New York for options ░░░░░░░░ From New York this ░░░░░░░░ bloomberg. ♪