CBOE VIX Volatility Index plunges on Wednesday.
The CBOE VIX (VXX) declined sharply on Friday, as stocks zipped to record highs over positive news on the coronavirus front.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, reached an intraday low of 13.75 on a scale of 1-100 where 20 represents the historic average. It would eventually settle at 13.75, having declined 9.4%.
In stocks, the large-cap S&P 500 Index (SPY) advanced 0.7% on Wednesday.
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 4.9%.
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: (UVXY) UVXY is designed to deliver 1.5X (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 7.8%.
VelocityShares Daily 2x VIX Short Term Futures ETN (TVIX) TVIX is a leveraged VIX ETN that tracks an index of futures contracts on the VIX Short-Term Futures Index. It provides 200% leverage on the volatility moves. TVIX declined 9.5%.
The Final Word: Volatility has declined sharply in recent weeks, giving back all of its February gains. That’s good news for stocks, which appear keen on resuming their uptrend.