CBOE VIX Volatility Index edges slightly lower on Monday.
The CBOE VIX (VXX) backtracked slightly on Monday, as risk-on investors shrugged off coronavirus risks.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, touched an intraday low of 15.18 on a scale of 1-100 where 20 represents the historic average. The so-called “investor fear index” would eventually settle down 0.9% at 15.33.
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 1.7%.
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 0.6%.
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 1.6%.
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 2%.
The Final Word: Markets seem to be downplaying the impact of coronavirus. On Monday, Chinese CPI was reported at 5.4% annually in January, the highest in around eight years. The rapid increase was due to the coronavirus disrupting businesses and supply chains.