CBOE VIX Volatility Index falls sharply on Thursday.
The CBOE VIX (NYSEARCA:VXX) declined sharply on Thursday, as stocks staged another relief rally on signs of prevailing calm in the geopolitical arena.
The Chicago Board Options Exchange (CBOE) Volatility Index declined 8.7% to close at 18.49, its lowest level of the month. The so-called “fear index” traded between 18.16 and 19.92.
In equities, the S&P 500 Index (NYSEARCA:SPY) gained 0.8% on Thursday.
Major VIX ETFs:
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 4.1%.
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 2.1%.
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 6.2%.
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 6.5%.
The Final Word: Volatility is back to trading below the historic average, a sign that the bulls are once again controlling the tempo. However, underlying disks tied to geopolitics and free trade continue to threaten the outlook.