On: Dow plunges 1000 points

[d--b]

Banks sell derivatives indexed on vol, like vol swaps and var swaps.

VIX futures also reflect stock market volatility, and their prices are based on S&P option prices.

[quickthrower2 → d--b]

Ah VIX - I saw that https://news.ycombinator.com/item?id=16313832