CBOE VIX Volatility Index falls continues to backtrack from multi-year highs.
The CBOE VIX (VXX) was back on the defensive Monday, as stocks staged a massive relief rally on hopes that the worst of the coronavirus crisis had passed.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, bottomed at 43.65 on a scale of 1-100 where 20 represents the historic average. It would eventually settle down 5.8% at 44.09.
In stocks, the large-cap S&P 500 Index (SPY) rose 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 7.1%.
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 3.5%.
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 10.5%.
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 14.2%.
The Final Word: The number of confirmed coronavirus infections crossed 1.3 million on Monday, but the pace of growth appears to have slowed in some of the hardest hit areas. In the United States, the virus caseload now exceeds 350,000.