CBOE VIX Volatility Index maintains narrow range even as stocks falter.
The CBOE VIX (VXX) traded within a narrow range on Friday, even as stocks pulled back from record highs following lukewarm nonfarm payrolls data.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, traded between 12.09 and 12.87 on a scale of 1-100 where 20 represents the historic average. The so-called “fear index” settled up 1.6% at 12.74.
In stocks, the large-cap S&P 500 Index (SPY) declined 0.3% on Friday.
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 0.4%.
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 0.3%.
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 0.8%.
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 1%.
The Final Word: Markets remain relatively calm heading into the middle of January. Overvaluation risks remain a major area of concern as the bull market stretches on for an eleventh year.