iPath S&P 500 VIX Short-Term Futures ETN (VXX)

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* March 19, 2017

VIX Fix: Volatility’s Disappearing Act

As investors continued to face an environment of political uncertainty, major market indicators closed slightly higher in the wake of the Federal Reserve’s decision to hike interest rates 25 basis points at its FOMC meeting Wednesday. The Dow jumped 112 points on Wednesday as Fed Chair Janet Yellen cited a stronger economy. Conversely, the CBOE Volatility Index (VIX) began to drift downward, dipping below 11 on Friday. Despite volatility’s dissipation, call buying on VIX options has trended upward, creating an impressive amount of open interest. Collectively, these elements may cause one to question if volatility has disappeared, or if it is just conducting a little surveillance of its own.

“Be Careful: Stock Volatility is Hiding, Not Hibernating” – James Mackintosh, The Wall Street Journal
http://on.wsj.com/2mTZTc4

“Volatility, Stocks in Strange Dance” – Barron’s
http://bit.ly/2nwqg6a

“Market Defy Global Political Storms” – Saumya Vaishampayan, The Wall Street Journal
http://on.wsj.com/2nspdaE

“Financial Matters: Understanding the VIX” – Barry Nielsen, Financial Matters
http://bit.ly/2mU2pyT

http://www.cboe.com/blogs/options-hub/2017/03/19/the-weekly-options-news-roundup-3-19-2017

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