CBOE VIX Volatility Index edges lower after tumultuous start to trading.
The CBOE VIX (NYSEARCA:VXX) edged lower on Thursday, pressured by rising stock prices for a fifth day running.
The Chicago Board Options Exchange (CBOE) Volatility Index traded higher after the open and eventually peaked at 21.32. VIX, which trades on a scale of 1-100, eventually settled at 19.38, where it was down 3%.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) rose 0.5% 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 1.1%.
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 0.5%.
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 1.6%.
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 2%.
The Final Word: Stocks look poised to carry their momentum forward, but hostile negotiations in Congress could derail the positive outlook. The government shutdown looks poised to enter its third week, which threatens federal employee wages and the broader economy.