While VIX closed at its lowest level since 1993 on Friday, VVIX (which tracks the anticipated volatililty of VIX) completed a fourth week of gains in five, reaching a record high relative to the measure of equity turbulence.
(Click on image to enlarge)
As Bloomberg notes, with the VIX down more than 30% this year through the end of last week, investors have been using options to bet on volatility.
(Click on image to enlarge)
As the chart above shows, the volume of contracts wagering on a resurgence of market turmoil has reached its highest level since last February relative to those calling for a drop in price movements.
Comments
Log in or sign up to join the conversation.