When word came down after the close yesterday the Securities Exchange Commission had approved the listing of two ETFs employing 4x leverage, the response ranged from applause, to concern, to ridicule, and of course the internet being what it is, ridicule.

The past few weeks has seen an increase in broad market volatility as missiles have flown and bombs have been dropped.

Yesterday we looked into how the willingness of investors to sell option premium short VIX related products might lead to ‘People Set to get Burned by Volatility’, as those positions could act as dry kindling ready to burst into a flame of selling should the market start selling off.

We just came through one the quietest, least volatile period in stock in history in which the S&P 500 Index went 109 days without a 1% or more decline. This caused the VIX to sink down to the 11 level and the 30-day historical volatility to a minuscule 5.2% last week.