CBOE VIX Volatility Index finish lower as stocks approach record territory.
The CBOE VIX (NYSEARCA:VXX) headed for declines on Friday, as stocks approached record highs on stronger than expected bank profits.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, declined 7.2% to 12.08. The so-called “fear index” remains well below the historic average and shows no signs of mean reverting anytime soon.
In stocks, the S&P 500 Index (NYSEARCA:SPY) gained 0.7%.
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 2.2%.
ProShares Ultra Short Term VIX Futures: (NYSEARCA:UVXY) UVXY is designed to deliver 2X (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 6.8%.
VelocityShares Daily 2x VIX Short Term Futures ETN (NYSEARCA:TVIX) TVIX is a leveraged VIX ETN designed to deliver 2X the returns of the daily S&P 500 Short Term Futures Index. TVIX declined 9.1%.
The Final Word: With stocks returning to record territory, volatility is showing little signs of returning. Traders will begin to disengage from the markets next month ahead of the summer season, a period known for complacency on Wall Street.