CBOE VIX Volatility Index tumbles as stocks resume gradual uptrend.
The CBOE VIX (VXX) declined sharply on Friday, approaching levels not seen since the spring as investors continued to cheer apparent U.S.-China trade progress.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, traded between 12.09 and 13.05 on Friday. VIX eventually settled down 4.8% at 12.12 on a scale of 1-100 where 20 represents the historic average.
In stocks, the large-cap S&P 500 Index (SPY) advanced 0.3% on Friday.
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 2.1%.
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 1.1%.
ProShares Ultra Short Term VIX Futures: (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 3.2%.
VelocityShares Daily 2x VIX Short Term Futures ETN (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 4%.
The Final Word: Volatility is approaching the lowest level in seven months. Under these conditions, stocks are likely to continue their record-setting ways through the summer.