Volatility Rises as Political Risks Weigh on Equities

CBOE VIX Volatility Index bounces back following sharp decline.

The CBOE VIX (NYSEARCA:VXX) rose on Wednesday, as political volatility drove the major stock indexes lower.

The Chicago Board Options Exchange (CBOE) Volatility Index climbed 7.9% to 12.25, where it settled woff session highs. The volatility gauge reached a high of 12.59 before paring gains in afternoon trade. The VIX plunged on Tuesday as equities rallied.

The large-cap S&P 500 Index (NYSEARCA:SPY) pared losses to finish down 0.4% on Wednesday.

Major VIX ETFs:

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%.

VelocityShares Daily Inverse VIX Short Term Futures ETN: (NYSEARCA:XIV) Designed to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. XIV declined 0.8%.

ProShares Ultra Short Term VIX Futures: (NYSEARCA:UVXY) UVXY is designed to deliver 2X (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 1.5%.

VelocityShares Daily Short Term VIX Futures ETN (NYSEARCA:TVIX) TVIX is a leveraged VIX ETN designed to deliver 2X the returns of the daily S&P 500 Short Term Futures Index. TVIX advanced 1.2%.

The Final Word: Volatility remains low by historic standards, but is making a gradual recovery. Political risks loom large for equities as the Trump administration struggling to follow through on its mandate.

Summary

Article Name

VIX Daily Update: Volatility Rises as Political Risks Weigh on Equities

Description

CBOE VIX Volatility Index bounces back following sharp decline.

Author


Sam, The Trading God

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