Surging equity prices send volatility lower on Monday.
The CBOE VIX (NYSEARCA:VXX) declined on Monday as Wall Street put up firm gains ahead of corporate earnings season.
The Chicago Board Options Exchange (CBOE) Volatility Index fell 5.1% to 12.69, on a scale of 1-100 where 20 represents the historic average. That was the lowest settlement in three weeks. With the decline, the fear index is back to negative momentum according to the Relative Strength Index.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) gained 0.8% on Monday.
Major VIX ETFs:
iPath S&P 500 VIX Short Term Futures ETN: (NYSEARCA:VXX) Designed to offer exposure to the S&P 500 VIX Short Term Futures Index Total Return. The Index uses CBOE Volatility Index futures by way of a long position in the first and second month VIX Futures contracts. VXX declined 5.2%.
ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY advanced 2.5%.
ProShares Ultra Short Term VIX Futures: (NYSEARCA:UVXY) UVXY is designed to deliver 2X (leveraged) returns of the day’s moves in the S&P 500 VIX Short Term Futures Index. It tacks the two front months of the futures contract. UVXY declined 8.3%.
VelocityShares Daily 2x VIX Short Term Futures ETN (NYSEARCA:TVIX) TVIX is a leveraged VIX ETN designed to deliver 2X the returns of the daily S&P 500 Short Term Futures Index. TVIX declined 10.3%.
The Final Word: Corporate earnings season is expected to keep volatility at bay in the coming weeks as investors eye another quarter of robust growth.