Bears

VIX Daily Update: Volatility Slides as Stocks Rise to New Heights

The CBOE VIX Volatility Index declined on Tuesday.

The CBOE VIX (VXX) continued lower on Tuesday, as U.S. equities set new all-time highs. 

The Chicago Board Options Exchange Volatility, commonly known as the VIX, reached an intraday low of 20.80 on a scale of 1-100, where 20 represents the historical average. It would eventually settle down 4.2% at 21.70.

In stocks, the large-cap S&P 500 Index (SPY) advanced 1.6% 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 declined 1.6%.

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 0.9%.

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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 2.4%.

The Final Word: Investors continue to eye the global spread of COVID-19. As of Tuesday, more than 59.5 million people had been infected with the novel disease, including 12.5 million in the United States.