CBOE VIX Volatility Index hovers within a narrow range as stocks reach new highs.
The CBOE VIX (VXX) remained sidelined on Monday, as stocks reached new intraday highs on the back of U.S.-China trade optimism.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, traded between 12.41 and 13.09 on a scale of 1-100 where 20 represents the historic average. The so-called “fear index” would eventually settle at 12.42, where it was down 1.1%.
In stocks, the large-cap S&P 500 Index (SPY) advanced 0.7% on Monday.
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 2.5%.
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 1.3%.
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 3.9%.
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 5.3%.
The Final Word: Markets remain calm at the start of 2020, which is a positive sign for stocks. Momentum is expected to remain positive this week as the United States and China officially sign off on their “phase one” trade deal.