Volatility is the hottest stock

Bloomberg reports today that this week, for the first time, volume in the iPath S&P 500 VIX Short-Term Futures ETN (VXX) surpassed trading in any company.

On Tuesday, a record 110 million shares traded hands compared to second-place Bank of America at 89.3 million.

Volatility has declined this year after a surge in February.

An extremely popular trade is to bet against volatility.

But it's that same trade that bankrupted Long Term Capital Management in what led to the original Wall St bailout.

So the question now is: How much bigger and more painful will the next volatility blowup be?