VIX Daily Update: Volatility Hits Multi-Week High as Boeing Rattles Markets
CBOE VIX Volatility Index touches multi-week highs on Tuesday.
The CBOE VIX (VXX) was back on the offensive Tuesday, climbing to its highest level in two weeks after shares of Boeing dragged the U.S. stock market lower.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, reached an intraday high of 13.33 on a scale of 1-100 where 20 represents the historic average. That was the highest level in two weeks. It would eventually settle at 12.82, having gained 6%.
In stocks, the large-cap S&P 500 Index (SPY) declined 0.3% on Tuesday.
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 0.8%.
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 0.3%.
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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. UVXY advanced 1%.
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 1.7%.
The Final Word: Some analysts believe stocks are overvalued and due for a large correction. If that’s the case, volatility could make its presence felt in the not-too-distant future.