VIX Daily Update: Volatility Retreats to Start the Week
CBOE VIX Volatility Index declined on Monday as stocks resumed their uptrend.
The CBOE VIX (VXX) swung lower on Monday, as stocks rebounded on broad gains in consumer and industrials companies.
The Chicago Board Options Exchange Volatility Index fell to a session low of 32.69 on a scale of 1-100 where 20 represents the historic average. The so-called ‘fear index’ would eventually settle down 5% at 32.99.
In stocks, the large-cap S&P 500 Index (SPY) rose 1.5% 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 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 2.2%.
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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. UVXY declined 7.4%.
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 declined 9%.
The Final Word: Investors continue to eye the global spread of COVID-19. As of Monday, more than 10.2 million people had been infected with the novel disease, including nearly 2.6 million in the United States.