Pravit Chintawongvanich Says VIX Had Biggest Overreaction to Selloff

The video discusses the recent spike in volatility and the impact of short volatility products on the market. It analyzes the reduced instability and negative convexity in the system, and the role of sacrificial lambs in market sell-offs. The VIX's elevated levels are examined, along with the reasons for equity sell-offs. The video concludes with strategies for managing volatility, emphasizing risk-limited approaches like VXX put spreads.

Discuss the relationship between equity volatility and the VIX during market sell-offs.

What factors contributed to the recent spike in volatility according to the text?