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October VIX futures -- which reflect the market’s expectations for volatility from Oct. 21 to Nov. 21 -- are elevated relative to both September and November contracts. That “kink” in the term structure is roughly 3 volatility points higher than the average VIX curve at this time before past presidential elections, according to UBS Group Inc.The spread between September and October VIX futures is already higher than at any point in the past three presidential elections. Currently, the October contract is trading 3.75 vol points above September’s -- in 2012, the gap was 2.5 percentage points at its widest point, according to Susquehanna Financial Group LLP. “Volatility historically trends up in the months leading into an election. Kinks are now showing up on volatility surfaces around the election date across asset classes. Equity vol may outperform rates vol given yields are anchored and the dovish Fed.” #stocktalk