If I understand the concept of VIX correctly it's an instrument to let investors navigate uncertainty. However, premarket and in early trading trading, VIX was not reflective of such uncertainty. It's acting as an primary indicator for market decline.
SPY near it's all time high and with so much ambiguity with how tariffs are going to impact the market, how can VIX not spiking up?
The calculation of VIX though is complex calculation based on the combination of various options premiums over a certain period of time (I certainly don't know how exactly).
Wouldn't it be possible for large institutional investors to game the system of this complex calculation and manipulate it to further their needs.
I suspect VIX is not providing the capability it was originally intended for.