CBOE VIX Volatility Index declined on Monday as stocks moved higher.
The CBOE VIX (VXX) declined sharply on Monday, as stocks mounted an impressive relief rally despite extended downside pressure on the commodities market.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, reached an intraday low of 57.20 on a scale of 1-100 where 20 represents the historic average. The so-called ‘fear index’ eventually settled down 12.6% at 57.27.
In stocks, the large-cap S&P 500 Index (SPY) gained 3.4% 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 3.8%.
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 1.5%.
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 5.3%.
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 6.9%.
The Final Word: Coronavirus is wreaking havoc on the global economy. It remains to be seen whether the threat of recession has been fully priced into the stock market after the major indices returned to multi-year lows in March.