VIX Daily Update: Volatility Dips Slights as Stocks Rise
The CBOE VIX Volatility Index remains below 20.
The CBOE VIX (VXX) edged lower on Monday, as U.S. equity markets bounced back after a down week.
The Chicago Board Options Exchange Volatility Index, commonly known as the VIX, reached an intraday low of 17.80 on a scale of 1-100, where 20 represents the historical average. It would eventually settle down 1.7% at 18.30.
In stocks, the large-cap S&P 500 Index (SPY) rose 0.3% on Monday.
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 3.5%.
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 2%.
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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 declined 5.2%.
The Final Word: A capital gains hike appears to be on the cards for the Biden administration. In this environment, investors can expect a return to volatile trading conditions in the short term.