CBOE VIX Volatility Index creeps higher ahead of corporate earnings.
The CBOE VIX (NYSEARCA:VXX) rose slightly on Monday, as investors shifted their focus to what’s expected to be a difficult earnings quarter for stocks.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the “fear index,’ reached a session high of 13.77 on a scale of 1-100 where 20 represents the historic average. VIX would later consolidate at 13.15, having gained 2.6%. Volatility is down more than 47% this year.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) advanced 0.1%.
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 0.3%.
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 0.8%.
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 1%.
The Final Word: Although the VIX remains well below the historic average, a disappointing earnings quarter could undermine the stock rally and bring volatility back into the fold. Earnings season begins in earnest on Friday with a pair of reports from JPMorgan Chase & Co and Wells Fargo & Co.