Implied Volatility

VIX Daily Update: Fear Index Skyrockets as Stocks Falter

The CBOE VIX Volatility Index rose on Friday.

The CBOE VIX (VXX) spiked towards 40 on Friday, as equity markets resumed their plunge. 

The Chicago Board Options Exchange Volatility, commonly known as the VIX, reached an intraday high of 37.51 on a scale of 1-100, where 20 represents the historical average. It would eventually settle up 6.6% at 32.19.

In stocks, the large-cap S&P 500 Index (SPY) declined 1.9% 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 advanced 6.3%.

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 2.3%.

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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. UVX advanced 9.2%.

The Final Word: Investors continue to eye the global spread of COVID-19. As of Friday, more than 101.7 million people had been infected with the novel disease, including 25.8 million in the United States.