HVU is down over 40% in the last month yet ownership of futures on the volatility index rose to a record last week. Open interest climbed to almost 450,000, eclipsing the previous high set in September, according to the CBOE Futures Exchange. Bloomberg

We find volatility for sale despite what will remain a contentious debt ceiling debate, a deepening recession in Europe, and what so far has been a mixed earnings picture,” Peter Cecchini, global head of institutional equity derivatives at New York-based Cantor Fitzgerald LP, said in an interview. “The beatdown in volatility, given the upcoming debt ceiling, is an opportunity to buy it.”

VIX Slips to Lowest Since 2007 as S&P 500 Reaches Five-Year High

Is is near the time to take a big risk with HVU?