August 25 — a special day. On Seeking Alpha I urged being long SVXY and CBOE first publicly exposed its 9-day time horizon Volatility Index, accompanying the 30-day index.
Market-makers and prop traders use VIX-based securities in their hedging. The longer the time to expiration of the contracts involved, the larger the uncertainty, the higher the cost.
CBOE insiders had watched VXST, the new index, behavior privately for months before its release. Its shorter time horizon can advantage arbitrages and reduce capital haircuts.