VIX Daily Update: Volatility Spikes as Stocks Falter Again
CBOE VIX Volatility Index rises sharply on Friday.
The CBOE VIX (VXX) advanced on Friday, as stocks sold off again on news of fast-spreading virus infections across the United States.
The Chicago Board Options Exchange Volatility Index, commonly known as the VIX, reached an intraday high of 36.25 on a scale of 1-100 where 20 represents the historic average. VIX would eventually settle up 7.3% at 34.56.
In stocks, the large-cap S&P 500 Index (SPY) declined 2.4% 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 5.9%.
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 3.1%.
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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 9.3%.
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 11.2%.
The Final Word: Investors continue to eye the global spread of COVID-19. As of Friday, more than 9.6 million people had been infected with the novel disease, including more than 2.4 million in the United States.