CBOE VIX Volatility Index remained above 60 on Wednesday even as stocks rallied.
The CBOE VIX (VXX) remained elevated on Wednesday, as investors continued to monitor the rapidly evolving coronavirus pandemic.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, traded between 58.03 and 68.86 on a scale of 1-100 where 20 represents the historic average. The so-called “investor fear index” eventually settled up 6.8% at 65.86.
In stocks, the large-cap S&P 500 Index (SPY) rallied 1.2% on Wednesday.
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 advanced 7.4%.
ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY declined 4%.
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 advanced 12.8%.
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 advanced 15.7%.
The Final Word: Coronavirus has established a strong foothold in the United States. America is now the third-most infected country with over 53,000 confirmed cases.