ProShares Trust VIX Mid-Term Futures ETF (BATS: VIXM)

Ultime notizie per ProShares Trust VIX Mid-Term Futures ETF (BATS:VIXM)

The fund seeks to meet its investment objective, by taking long positions in VIX futures contracts. It will also hold cash or cash equivalents such as U.S. Treasury securities or other high credit quality, short-term fixed-income or similar securities (such as shares of money market funds) as collateral for Financial Instruments and pending investment in Financial Instruments.

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ProShares Trust VIX Mid-Term Futures ETF

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Benzinga Market Summary: Indexes Post Major Losses, VIX Volatility Index Spikes To Third Highest Level Ever, Japanese Market Falls 12%, Bitcoin Falls 12%, Yield Curve Disinverts For First Time In Two Years

Small caps and growth stocks are out and utilities and energy stocks are back in following a surprise inflation reading that has sent U.S. equity markets <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37099227/economists-sound-alarm-on-inflations-stubborn-grip-no-chance-inflation-will-return-">plunging on Tuesday.</a>
Such was the turmoil, that the CBOE VIX Volatility Index, the so-called Wall Street fear gauge, spiked from around 13.9 to 17.9 — a 28% jump — hitting its highest level since Nov. 1. It ended the day at 15.85.
&#8220;At present, this increase is the biggest jump since March 9th and the volatility index stands at over a three-month high. And yet, these are still very low levels of overall implied volatility,&#8221; said analyst John Kicklighter on X. 
The ProShares Vix Mid-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXM#NYSE">VIXM</a>), an exchange traded fund which aims to track the VIX Index, jumped 2.2% to $16.37 on Tuesday, but was down 1.6% in pre-market trading on Wednesday.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14055541/newplot-86.png" alt="" class="wp-image-215481" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14055541/newplot-86.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14055541/newplot-86-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read: <a href="https://www.benzinga.com/markets/equities/24/02/37078037/market-correction-due-stocks-are-running-out-of-reasons-to-move-higher-analyst-says">Market Correction Due: Stocks Are Running Out Of Reasons To Move Higher, Analyst Says</a>
The S&amp;P 500 Index ended 1.4% lower at 4,953.17 on Tuesday. Tracking the index was exchange traded fund SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) which also lost 1.4% to $494.14.
ETFs tracking growth stocks and small-cap indexes experienced more significant declines. The Invesco QQQ Trust, tracked the NASDAQ&#8217;s 1.8% fall, while the iShares Russell 2000 ETF (IWM), which tracks the small cap index, slumped 4.1%.
<h2 class="wp-block-heading">What Analysts Are Saying</h2>
&#8220;Markets had embraced the narrative of a very soft landing that allowed for sizeable early rate cuts by the Federal Reserve,&#8221; <a href="https://twitter.com/elerianm/status/1757487161404797287">said</a> Mohamed El-Erian, Allianz chief economic advisor on X. 
He added: &#8220;The data release serves as a reminder of the challenges of the last mile in the inflation battle and the insensitivity of certain sectors of the economy, such as services, to higher interest rates.&#8221;
Indeed, on Tuesday, Craig Johnson, chief analyst at Piper Sandler, <a href="https://www.benzinga.com/markets/equities/24/02/37078037/market-correction-due-stocks-are-running-out-of-reasons-to-move-higher-analyst-says">told</a> Benzinga&#8217;s PreMarket Prep that he expected June or July for the timing of the Fed&#8217;s first rate cut, as he predicted a market correction.
&#8220;Be ready for a correction in this market that could probably take the S&amp;P 500 back to about 4,600,&#8221; Johnson said.
<h2 class="wp-block-heading">Out Of Growth And Into Value</h2>
The conventional wisdom during times of high inflation and interest rates is to rotate out of small caps and growth stocks — the sectors that rely on costly funding to keep going — and into value stocks that pay dividends, such as utilities and energy companies.
The Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) was down with the rest of the market on Tuesday, but could bounce if the equity sell-off persists. Likewise, the Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), which holds top oil company stocks Exxon Mobil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) and Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>), was also lower on Tuesday.
Some analysts continue to like the aerospace and defense sectors given the prospect of two lingering wars in Ukraine and Gaza, and the possibility of further escalation in the Middle East. 
Companies such as Transdigm Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDG#NYSE">TDG</a>) and Howmet Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HWM#NYSE">HWM</a>) have been good long-term investments in these sectors, as the iShares US Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>) has gained around 22% since the equity rally began in October.
Now Read: <a href="https://www.benzinga.com/markets/equities/24/02/37103116/markets-tumble-vix-up-8-on-hot-inflation-data-dollar-yields-jump-as-traders-unwind-rate-cut-bets">Markets Tumble, VIX Up 8% On Hot Inflation Data, Dollar, Yields Jump As Traders Unwind Rate Cut Bets: What&#8217;s Driving Markets Tuesday?</a>
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VIX Hits 3-Month High: Market Turns To Stocks Braving 'Last Mile In The Inflation Battle'

Equity markets are having a bumpy ride so far in 2024, and Tuesday was the worst day yet, with weaker sentiment underlined on Wednesday by a move on Wall Street&#8217;s &#8220;<a href="https://www.benzinga.com/markets/equities/24/01/36517156/new-year-low-vix-investors-stay-calm-as-2024-opens-to-turbulent-markets">fear gauge</a>&#8221; to a two-month high.
The CBOE VIX volatility index jumped 4.8% to 14.5 on Wednesday ahead of the market open. The ProShares VIX Mid-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXM#NYSE">VIXM</a>), an exchange traded fund that attempts to mirror the performance of the volatility index, was up 2.4% on Wednesday at 16.39.
While 14.5 isn&#8217;t historically high, it is significant in being the highest reading since Nov. 14, 2023, when the index was dropping sharply from levels above 20.
A VIX above 20 is seen as a level indicating &#8220;fearful&#8221; market conditions, marked by volatility and downside pressure on equities.
When the VIX was last above 20 on Oct. 30, it was at the start of a sharp two-month downturn that coincided with strong gains on global equity markets. As the VIX tumbled from around 21 in late October to around 12 in December, the S&amp;P 500 index put on 16%, as did the main ETF that tracks it — the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/17085806/newplot-46-1.jpeg" alt="" class="wp-image-184459" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/17085806/newplot-46-1.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/17085806/newplot-46-1-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/17085806/newplot-46-1-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
Also Read: <a href="https://www.benzinga.com/markets/equities/24/01/36597914/fed-rate-cuts-in-march-keep-dreaming-economists-say-as-inflation-spike-shakes-markets">Fed Rate Cuts In March? Keep Dreaming, Economists Say As Inflation Spike Shakes Markets</a>
<h2 class="wp-block-heading">Rate Expectations Too Optimistic</h2>
The recent increase in the VIX may be partly influenced by one of several factors, including changing expectations around <a href="http://benzinga.com/markets/equities/24/01/36597914/fed-rate-cuts-in-march-keep-dreaming-economists-say-as-inflation-spike-shakes-markets">Federal Reserve interest rates</a>.
While markets have been pricing in six quarter-point rate cuts for 2024, economic fundamentals have been telling the Fed a different story. The evidence is stacking up against market expectations, and their hopes are now looking overpriced.
Inflation <a href="https://www.benzinga.com/economics/macro-economic-events/24/01/36592931/inflation-rises-more-than-expected-to-3-4-in-december-rattling-traders-betting-on">data last week showing</a> an unexpectedly sharp tick higher in the annual headline consumer price inflation rate was the first spoiler for forecasts of a Fed rate cut in March.
Then, on Tuesday, Fed board member Christopher Waller undermined hopes further when he said: &#8220;With economic activity and labor markets in good shape and inflation coming down gradually to 2 percent, I see no reason to move as quickly or cut as rapidly as in the past.&#8221;
<h2 class="wp-block-heading">Are Markets Re-Pricing Rate Cuts?</h2>
This, added to similar comments from fellow board members Loretta Mester and Michelle Bowman, last week, appeared to be the final catalyst needed to push the markets into a different way of thinking.
&#8220;For weeks, various Fed speakers have lining up to push back against market expectations for aggressive Fed rate cuts this year,&#8221; <a href="https://research.rabobank.com/markets/en/documents/310922_FX%20Daily160124a.pdf">said </a>Jane Foley, senior FX strategist at Rabobank.
She added: &#8220;Few forecasters see risk that the Fed may be pushed into hiking rates again this cycle. That said, no policymaker wants to be charged with having made a policy mistake. This alone is a powerful reason for expecting the FOMC to err on the side of caution over rate cuts.&#8221;
Another reason for keeping rates where they are for the time being is that few economists now believe the U.S. economy is recession bound this year. Most believe a soft landing is the most likely scenario, while some think the economy won&#8217;t land at all — that it will maintain growth throughout 2024.
<h2 class="wp-block-heading">Mis-Priced Geopolitical Tensions?</h2>
One further thing to note on the &#8220;fear gauge&#8221; is that geopolitical tensions should not be ignored.
Thus far, with two major conflicts — Russia/Ukraine and Israel/Hamas — happening simultaneously, markets still managed to notch up significant gains in the last two months of 2023. This may not continue to be the case — certainly as the <a href="https://www.benzinga.com/markets/equities/24/01/36647876/iran-emerges-from-shadows-with-direct-strike-in-iraq">stakes seem to be being raised</a> in the Middle East.
Several of the spikes above 20 on the VIX in the past 30 years have been due to global conflict. But thus far, the turmoil in the Middle East has had little impact on oil prices, while investors have not been seeking the safety of traditional haven investments such as gold or Treasuries.
Gold was down 0.1% in early trade on Wednesday, while the SPDR Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) was flat in pre-market trading. Treasury yields were higher, indicating that prices were falling.
Now Read: <a href="https://www.benzinga.com/markets/equities/24/01/36646464/end-of-the-peace-dividend-stocks-that-could-benefit-from-higher-defense-spending-in-2024">End Of The Peace Dividend? Stocks That Could Benefit From Higher Defense Spending In 2024</a>
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VIX At 2-Month High: Fears Mount As Markets Re-Assess Rate Cut Premium

The &#8220;Dumb Money Confidence&#8221; index rose to its third-highest reading in 25 years on Friday, just as the VIX volatility index, also known as Wall Street&#8217;s &#8220;fear gauge&#8221; traded at its lowest levels since 2019. 
Coincidence or correlation?
It&#8217;s a well-known maxim of Warren Buffett: &#8220;When everybody else gets greedy, get scared. And when everybody else gets scared, get greedy,&#8221; and illustrates perfectly what the two indexes are telling us: that the bandwagon effect has taken hold.
The bandwagon effect, follow-the-crowd — whatever you want to call it — is a trading bias that indulges a group-think mentality. This would be fine if you follow a crowd getting in on the meat of an asset price rise.
<h2 class="wp-block-heading">Following The Crowd Too Late</h2>
But bandwagons don&#8217;t pick up the players until the tune is well established. And so it is with dumb money that follows the trend too late.
That, according to Jason Goepfert, founder of Sentiment Trader, who invented the Dumb Money index, is why stock indexes are trading within 2% of their record highs, why the VIX index, a measure of market confidence, is trading at a four-year low and his own index is at its third-highest level in 25 years.
&#8220;The time most trend-followers hop on a trend, and most aggressively, is about the time the trend is becoming exhausted,&#8221; says Goepfert.
&#8220;Because most investors follow trends to some degree, these indicators tend to capture the behavior of most of the money flowing into and out of markets,&#8221; he adds.
The Dumb Money index is currently at 87. When it hit 88 in July, the S&amp;P 500 suffered a three-month pullback.
<h2 class="wp-block-heading">How Far Can The Rally Be Pushed?</h2>
The current rally in stocks has been established for nearly two months so it could have longer to go — particularly given the boost this week from a <a href="https://www.benzinga.com/markets/equities/23/12/36235965/with-fed-rate-cuts-on-the-horizon-equity-markets-soar-dollar-weakens-10-year-treasury-yield-fall">more dovish than expected Federal Reserve</a>.
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), an exchange-traded fund that tracks the S&amp;P 500 index, is up nearly 15% so far in this rally, while the ProShares VIX Mid-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXM#NYSE">VIXM</a>), which tracks the VIX index, is down nearly 24% during the stock market rally.
Goepfert says: &#8220;Very high confidence typically precedes modest gains at best until sentiment resets.&#8221;
Much will depend, going into 2024 on the macroeconomic environment, which is already showing signs of slowing growth.
Photo: Shutterstock

'Dumb Money' Is Super Confident In Stock Market Right Now: Should We Be Concerned?

The CBOE Volatility Index, commonly known as the VIX or the &#8220;fear gauge&#8221; of the stock market, has experienced a notable upswing recently, reaching levels not seen <a href="https://www.benzinga.com/markets">in over five months.</a>
This surge in the VIX, which has breached the psychologically significant mark of 20, serves as a compelling indicator of growing apprehensions within financial markets.
The VIX, a pivotal gauge of expected volatility in the S&amp;P 500 provided by CBOE Global Markets Inc., experienced a surge of almost 13% on Tuesday, and is currently poised for its third consecutive weekly advance.
This spike has followed a month of substantial volatility, with September witnessing a 30% increase in the VIX, its most robust performance since April 2022. Notably, this came after the VIX had reached its lowest point (12.68) since January 2020.
The fear index has now exceeded both its 50-day and 200-day moving averages. The latter in particular constitutes a breach of what had been a formidable resistance hurdle since March 2023.
Chart: VIX Index Rises Above Key Moving Averages
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="695" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/10/04112427/VIX_2023-10-04_16-22-16_a9a16-1024x695.png" alt="" class="wp-image-117880" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/10/04112427/VIX_2023-10-04_16-22-16_a9a16-1024x695.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/10/04112427/VIX_2023-10-04_16-22-16_a9a16-300x204.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/10/04112427/VIX_2023-10-04_16-22-16_a9a16-768x521.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/10/04112427/VIX_2023-10-04_16-22-16_a9a16-1536x1043.png 1536w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/10/04112427/VIX_2023-10-04_16-22-16_a9a16.png 1591w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">VIX&#8217;s Ascent Amid Treasury Yield Rally</h2>
A primary catalyst behind this surge in the VIX is the remarkable rise in U.S. Treasury yields over the past month. The 10-year Treasury note yield has surged past 4.75%, attaining levels not seen since August 2007. Concurrently, yields on 30-year Treasuries have skyrocketed to 4.90%-4.95%, representing their highest peaks in 16 years.
<a href="http://benzinga.com/government/23/10/35068904/10-year-treasury-yields-at-16-year-highs-shake-markets-how-far-can-they-climb">As previously discussed,</a> factors contributing to this surge in yields include a rising government deficit, the Federal Reserve&#8217;s quantitative tightening program, and a hawkish stance on interest rates.
When U.S. government bond yields increase, it signifies a decline in the value of what are often considered the world&#8217;s safest and most liquid assets, triggering reverberations throughout global asset classes. A notable example of this impact is the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>), which has plummeted by more than 50% from its levels in March 2020.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/10/35089599/mccarthys-ouster-amplifies-congressional-tensions-goldman-sachs-anticipates-q4-shut">McCarthy&#8217;s Ouster Amplifies Congressional Tensions, Goldman Sachs Anticipates Q4 Shutdown</a>
Chart: Treasury Yields Rocketed To 16-Year Highs 
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="695" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/10/04112645/US10Y_2023-10-04_16-26-31_9ec19-1024x695.png" alt="" class="wp-image-117883" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/10/04112645/US10Y_2023-10-04_16-26-31_9ec19-1024x695.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/10/04112645/US10Y_2023-10-04_16-26-31_9ec19-300x204.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/10/04112645/US10Y_2023-10-04_16-26-31_9ec19-768x521.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/10/04112645/US10Y_2023-10-04_16-26-31_9ec19-1536x1043.png 1536w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/10/04112645/US10Y_2023-10-04_16-26-31_9ec19.png 1591w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">Equities Feel The Yields&#8217; Impact</h2>
As U.S. government bond yields climb, their influence extends beyond the bond market, creating ripple effects in the stock market.
Many companies and sectors rely heavily on low or stable market interest rates to sustain their operations and profitability. 
As highlighted in a recent note from Goldman Sachs, lower interest expenses and corporate tax rates have contributed to over 40% of real growth in corporate profits <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/10/35062922/higher-rates-lower-leverage-growth-stocks-to-struggle-while-ai-offers-hope-goldman-">from 1989 to 2019. </a>
Consequently, the shift from a pre-pandemic environment of low interest rates to one marked by elevated rates and robust inflation presents a headwind for growth stocks, according to Goldman Sachs analysts.
The stock market is currently recalibrating itself to accommodate a prolonged era of heightened interest rates and sustained inflation, which, in turn, is propelling volatility. 
Although the VIX itself isn&#8217;t a tradable instrument, there are several exchange-traded funds (ETFs) available that provide investors with exposure to stock market volatility. These ETFs include:
<ul>
<li>Proshares Trust VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXY#NYSE">VIXY</a>)</li>
<li>Proshares Trust VIX Mid-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXM#NYSE">VIXM</a>)</li>
<li>2x Long VIX Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UVIX#NYSE">UVIX</a>)</li>
</ul>
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/10/35089599/mccarthys-ouster-amplifies-congressional-tensions-goldman-sachs-anticipates-q4-shut">McCarthy&#8217;s Ouster Amplifies Congressional Tensions, Goldman Sachs Anticipates Q4 Shutdown</a>
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VIX Soars To 5-Month High: What Surging Treasury Yields Mean For Stocks

The CBOE Volatility Index, also known as the VIX or &#8220;fear index,&#8221; witnessed a sudden surge of 9% Friday, marking the most significant single-day increase since mid-August. Produced by CBOE Global Markets Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CBOE#NYSE">CBOE</a>), the VIX is a well-regarded gauge of option <a href="https://www.benzinga.com/markets">volatility in the S&amp;P 500 index.</a>
This rapid surge in market volatility followed weeks of relative calm, with the VIX hitting its lowest level since January 2020, closing at 12.81 on Thursday.
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="548" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/15150047/VIX_2023-09-15_21-00-23_531a1-1024x548.png" alt="" class="wp-image-107026" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/15150047/VIX_2023-09-15_21-00-23_531a1-1024x548.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/15150047/VIX_2023-09-15_21-00-23_531a1-300x161.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/15150047/VIX_2023-09-15_21-00-23_531a1-768x411.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/15150047/VIX_2023-09-15_21-00-23_531a1-1536x822.png 1536w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/15150047/VIX_2023-09-15_21-00-23_531a1.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">What Triggered VIX&#8217;s Friday Spike?</h2>
Several factors may have contributed to the remarkable daily spike in the VIX. Economic data published this week indicated a resurgence in inflation, raising some concerns among investors. 
Additionally, the surge in oil prices may have played a significant role in driving up the VIX. WTI crude oil prices touched $90 per barrel on Friday, adding to the growing concerns about rising energy costs and their potential impact on the broader economy and interest rates. 
Technical factors were also at play. Friday coincided with a triple witching day, a term used to describe the simultaneous expiration of stock options, stock index futures and stock index options contracts, all on the same trading day. 
This event, which occurs four times a year, led to a total value of option expirations amounting to an astonishing $3.4 trillion.
The previous triple witching day in June saw the VIX rise by 4.4%, and in March, it surged by 11%.
Read also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/09/34623277/bonds-in-a-multi-year-bear-market-experts-sound-alarm-on-further-rate-hikes-as-oil-">&#8216;Bonds In A Multi-Year Bear Market&#8217;, Experts Sound Alarm On Further Rate Hikes As Oil Goes Haywire</a>
<h2 class="wp-block-heading">CBOE Global Markets Reports Significant Growth in VIX Options</h2>
CBOE Global Markets released its second-quarter financial results on Aug. 4, 2023. The company reported earnings per share of $1.78, slightly exceeding estimates of $1.77. However, the revenue figure of $467 million fell short of expectations, which had been set at $469 million.
Of particular interest in CBOE&#8217;s report was the substantial growth in average daily volumes for VIX options, which increased by an impressive 53% year-over-year in the second quarter. This growth underscores the heightened interest in and demand for options linked to market volatility.
Goldman Sachs analysts recently revealed the VIX is presently trading at bargain levels compared to what the broader <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/09/34498344/volatility-bargain-alert-goldman-sachs-analyst-asserts-vix-is-priced-too-low-for-ec">economic context would imply.</a>
No exchange-traded fund exactly replicates the CBOE Global Markets&#8216; VIX. 
However, the ProShares Trust VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXY#NYSE">VIXY</a>), the ProShares Trust VIX Mid-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXM#NYSE">VIXM</a>), and the ProShares Trust Ultra VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UVXY#NYSE">UVXY</a>) may provide a good correlation to participate in the VIX&#8217;s movements.
Now read: <a href="https://www.benzinga.com/news/earnings/earnings-beats/23/09/34611199/nasdaq-futures-edge-down-ahead-of-data-deluge-uaw-strike-analysts-warn-fed-may-not-b">Stock Retreats As Bond Yields Climb Amid Oil Concerns, UAW Strike: What&#8217;s Driving Markets Friday?</a>
Photo via Shutterstock.

Options

CBOE

UVXY

CBOE Volatility Index Spikes 9% As Triple Witching Day Shakes Market

Analysts at Goldman Sachs are highlighting an intriguing disconnect between market conditions and the <a href="https://www.benzinga.com/money/guide-to-volatility-indices-vix">famed &#8216;fear&#8217; gauge</a>.
Goldman Sachs&#8217; analyst team, featuring experts such as John Marshall and Spencer Hill, CFA, wrote a note explaining that the CBOE Volatility Index (VIX) is presently trading at price levels considerably beneath what the broader economic context would imply.
&#8220;The VIX at 13.8 is about 6 points below the 20.6 level implied by the growth and inflation environment, but only 4 points below levels implied by our year-end-2024 estimates,&#8221; the analysts wrote. 
<h2 class="wp-block-heading">Goldman Sachs Deep Dive</h2>
Goldman Sachs&#8217; analysis examines the historical underpinnings of the VIX. They examined key macroeconomic variables such as unemployment rates, ISM new orders, consumer spending growth, and inflation.
A number of factors typically appear to be correlated with an increase in equity market volatility:
<ul>
<li>Weakness in manufacturing new orders</li>
<li>Dwindling consumer expenditures</li>
<li>Rising unemployment</li>
<li>Disparities in inflation between consumers (CPI) and producers (PPI) </li>
</ul>
Despite a turbulent period that briefly propelled the VIX to a high of 31 during the regional-bank failures in March, volatility has since taken a nosedive, except for a brief uptick in August, plumbing to 2023 lows as September began.
Currently resting at a relatively modest 14, the VIX seems to have settled comfortably in the lower range of the post-pandemic era, even dipping below pre-Covid historical averages.
This year&#8217;s staggering 35% decline in the VIX is the second-largest annual drop since the 2009 financial crisis, surpassed only by the 46% plunge witnessed in 2019.
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="840" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/12115703/VIX_2023-09-12_17-56-46_ac6a9-1024x840.png" alt="" class="wp-image-104720" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/12115703/VIX_2023-09-12_17-56-46_ac6a9-1024x840.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/12115703/VIX_2023-09-12_17-56-46_ac6a9-300x246.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/12115703/VIX_2023-09-12_17-56-46_ac6a9-768x630.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/12115703/VIX_2023-09-12_17-56-46_ac6a9.png 1316w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">Signs of Turbulence on the Horizon?</h2>
Is an undervalued VIX an early indicator of turbulence ahead? There are market participants who seem to believe just that, betting on the fear index to skyrocket from here. 
Recently, an unconventional move saw a trader snap up more than <a href="https://www.benzinga.com/etfs/specialty-etfs/23/09/34335973/the-biggest-short-trader-bets-30k-on-1-100-vix-spike-by-february-2024">5,000 call options on the VIX, </a>anticipating the fear index to soar to an astonishing 180 levels by February 2024. That&#8217;s an eye-popping 1,100% leap from its current level.
It&#8217;s worth noting that the VIX reached its all-time high of 89 during the September 2008 Lehman Brothers crash when the entire financial world teetered on the brink of collapse.
Exchange-traded funds such as the ProShares Trust VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXY#NYSE">VIXY</a>), the ProShares Trust VIX Mid-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXM#NYSE">VIXM</a>), and the ProShares Trust Ultra VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UVXY#NYSE">UVXY</a>) provide opportunities to participate in the VIX&#8217;s movements.
Read now:<a href="https://www.benzinga.com/23/08/34043138/how-to-protect-your-portfolio-from-the-next-crash-with-spy-vix-gld-tlt-and-uup"> How To Protect Your Portfolio From The Next Crash With SPY, VIX, GLD, TLT, And UUP</a>

Analyst Ratings

Volatility Bargain Alert: Goldman Sachs Analyst Asserts VIX Is Priced Too Low For Economic Realities

So far, 2023 has seen an equity bull market with low volatility, but whispers on Wall Street suggest an audacious move that could rival <a href="https://www.benzinga.com/topic/michael-burry">Michael Burry&#8217;s famous &#8220;Big Short.&#8221; </a>
In a jaw-dropping play, a trader recently shelled out $30,000 on a bet that hinges on the VIX index hitting 180 by February 2024. 
As of now, the VIX, often dubbed the &#8220;fear gauge,&#8221; is trading at a mere 15, implying a staggering 1,100% surge would be needed for the bet to pay off.
Yahoo Finance data reveals that the trader purchased 5,035 VIX options with a strike price of 180 and an expiration date of Feb. 14, 2024, at a cost of $0.06 per contract. 
This contrarian move raises eyebrows, especially considering that just last week, the VIX index sank to the 13 level, marking one of the lowest points of the year. Currently, it&#8217;s at its weakest level since December 2019, prior to the start of the Covid-19 pandemic.
Even more intriguing, the same trader, or others like them, have accumulated over 20,000 open interest contracts in VIX December options, all with the same strike price.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/09/34324490/apple-tech-giants-about-to-get-dwarfed-by-generative-ai-analyst-warns">Apple, Tech Giants &#8216;About To Get Dwarfed By Generative AI,&#8217; Analyst Warns</a>
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="437" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07145617/Screenshot-2023-09-07-alle-20.54.24-1024x437.png" alt="" class="wp-image-102478" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07145617/Screenshot-2023-09-07-alle-20.54.24-1024x437.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07145617/Screenshot-2023-09-07-alle-20.54.24-300x128.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07145617/Screenshot-2023-09-07-alle-20.54.24-768x327.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07145617/Screenshot-2023-09-07-alle-20.54.24.png 1370w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="328" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07145644/Screenshot-2023-09-07-alle-20.54.05-1024x328.png" alt="" class="wp-image-102479" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07145644/Screenshot-2023-09-07-alle-20.54.05-1024x328.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07145644/Screenshot-2023-09-07-alle-20.54.05-300x96.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07145644/Screenshot-2023-09-07-alle-20.54.05-768x246.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07145644/Screenshot-2023-09-07-alle-20.54.05.png 1362w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Source: Yahoo Finance
<h2 class="wp-block-heading">Betting On The Biggest Short</h2>
The audacity of this trade cannot be overstated. Since the CBOE Volatility Index (VIX) was introduced in 1993, it has never surpassed the 100 level.
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="528" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07150341/VIX_2023-09-07_21-03-26_dd985-1024x528.png" alt="" class="wp-image-102480" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07150341/VIX_2023-09-07_21-03-26_dd985-1024x528.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07150341/VIX_2023-09-07_21-03-26_dd985-300x155.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07150341/VIX_2023-09-07_21-03-26_dd985-768x396.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07150341/VIX_2023-09-07_21-03-26_dd985-1536x792.png 1536w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/09/07150341/VIX_2023-09-07_21-03-26_dd985.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
To put it in perspective, the VIX index reached an all-time high of 89 during the most dire financial day since 1929 when Lehman Brothers collapsed in September 2008. This is only half of the target set by the trader.
Even during the peak of the Covid-19 pandemic, when the whole world went into lockdown, the VIX only hit 85 on March 18, 2020. 
Similarly, when the Chinese stock market experienced a meltdown in August 2015, with the Shanghai stock exchange plunging nearly 9% in a single day, the VIX reached a level of 53, for those considering the possibility of a China-triggered market crash.
Opportunities to Access the VIX Index: For investors looking to gain exposure to the VIX index, there are several ETFs available. These include the ProShares Trust VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXY#NYSE">VIXY</a>), the ProShares Trust VIX Mid-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXM#NYSE">VIXM</a>), and the ProShares Trust Ultra VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UVXY#NYSE">UVXY</a>), which offers a leveraged play on the VIX.
Could this bet on the VIX index be the next &#8220;Big Short&#8221; to watch? Only time will tell, but if this audacious bet succeeds, the trader&#8217;s loved one might receive a memorable Valentine&#8217;s Day treat.
Read more: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/09/34326504/chinas-iphone-ban-throws-wrench-in-apple-profit-engine-30m-units-at-risk-bank-of-am">China&#8217;s iPhone Ban Throws Wrench In Apple Profit Engine: 30M Units At Risk, Bank Of America Warns</a>
Photo: Shutterstock

The Biggest Short: Trader Bets $30K On 1,100% VIX Spike By February 2024

The CBOE Volatility (VIX) Index, commonly known as the &#8220;fear index,&#8221; surged over 20% on Thursday, reflecting the prevailing market volatility across <a href="https://www.benzinga.com/quote/spy" target="_blank" rel="noreferrer noopener">major U.S. stock indices.</a>
With a daily change of 20%, the VIX is on track for its best session of 2023, topping the spike seen on March 8, when it soared 18.3% following the banking failures of Silicon Valley Bank and Signature Capital.
<h2 class="wp-block-heading">Chart: CBOE Volatility Index On Track For The Best 2023 Session (1-day % change in VIX)</h2>
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="750" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/06113233/VIX_2023-07-06_17-24-35_56eb0-1024x750.png" alt="" class="wp-image-63428" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/06113233/VIX_2023-07-06_17-24-35_56eb0-1024x750.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/06113233/VIX_2023-07-06_17-24-35_56eb0-300x220.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/06113233/VIX_2023-07-06_17-24-35_56eb0-768x562.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/06113233/VIX_2023-07-06_17-24-35_56eb0-1536x1125.png 1536w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/06113233/VIX_2023-07-06_17-24-35_56eb0.png 1618w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">Why is Stock Market Volatility Spiking on Thursday?</h2>
The spike in the VIX was fueled by mounting concerns that the Federal Reserve may raise interest rates again in 2023, potentially with two more hikes by year-end, as indicated by the June dot plot.
Wednesday&#8217;s <a href="https://www.benzinga.com/economics/macro-economic-events/23/07/33120898/fed-minutes-show-dissent-on-the-board-foreshadow-more-interest-rate-hikes-in-2023" target="_blank" rel="noreferrer noopener">minutes from the latest June FOMC Meeting</a> revealed an unusual dissent within the board, with a minority of members preferring a rate hike in June rather than keeping rates unchanged.
The minutes also indicated a strong consensus to implement further rate increases, as reflected in the macroeconomic projections, with two hikes being the median preference among Fed members.
<h2 class="wp-block-heading">Strong Economic Data Backed by Hawkish Fed Remarks</h2>
On Thursday, better-than-expected economic data further fueled market expectations of rate hikes by the Federal Reserve.
The <a href="https://www.benzinga.com/economics/macro-economic-events/23/07/33131965/adp-job-growth-soars-by-500k-jobless-claims-ticks-higher-traders-raise-fed-hike-b">ADP National Employment Report</a> revealed an impressive 497,000 new payrolls in June, a remarkable jump from May&#8217;s 278,000 and well above the forecast of 220,000.
Shortly after, the Institute for Supply Management (ISM) reported a <a href="https://www.benzinga.com/economics/macro-economic-events/23/07/33134063/us-services-sector-signals-strong-growth-beats-expectations-amplifying-rate-hike-" target="_blank" rel="noreferrer noopener">surge in the Services PMI</a> to 53.9 in June, up from 50.3 in May and beating expectations of 51. This marks the sixth consecutive expansion reading for the private services sector.
Adding fuel to the fire, Lorie K. Logan, president and CEO of the Federal Reserve Bank of Dallas and a Federal Committee Member this year, stated that &#8220;more restrictive policy and rate hikes are needed for the FOMC to reach goals.&#8221; She also expressed concern about the speed at which inflation will cool down and revealed her preference for a June rate hike.
<h2 class="wp-block-heading">Traders Now Fear the Fed Will Hike Twice</h2>
All these events have led traders to anticipate an increased likelihood of Fed rate hikes.
The probability of a 25 basis points hike in July has now risen to 95%, up from 90% yesterday.
More worrisome is the probability of a consecutive hike in September, which has increased from yesterday&#8217;s 18% to 28.5%, and the likelihood of a second rate hike in November now stands at over 40%, according to CME Group Fed Watch tool. 
<h2 class="wp-block-heading">CME Group Fedwatch: FOMC Meeting Probabilities as of July 6</h2>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>MEETING DATE</th>
<th>450-475</th>
<th>475-500</th>
<th>500-525</th>
<th>525-550</th>
<th>550-575</th>
<th>575-600</th>
</tr>
</thead>
<tbody>
<tr>
<td>26/07/2023</td>
<td></td>
<td></td>
<td>5,1%</td>
<td>94,9%</td>
<td></td>
<td></td>
</tr>
<tr>
<td>20/09/2023</td>
<td></td>
<td></td>
<td>3,6%</td>
<td>67,9%</td>
<td>28,5%</td>
<td></td>
</tr>
<tr>
<td>01/11/2023</td>
<td></td>
<td></td>
<td>2,5%</td>
<td>49,0%</td>
<td>40,1%</td>
<td>8,4%</td>
</tr>
<tr>
<td>13/12/2023</td>
<td></td>
<td>0,2%</td>
<td>6,7%</td>
<td>48,2%</td>
<td>37,3%</td>
<td>7,6%</td>
</tr>
<tr>
<td>31/01/2024</td>
<td></td>
<td>1,3%</td>
<td>13,6%</td>
<td>46,4%</td>
<td>32,4%</td>
<td>6,4%</td>
</tr>
<tr>
<td>20/03/2024</td>
<td>0,4%</td>
<td>4,7%</td>
<td>22,7%</td>
<td>42,4%</td>
<td>25,1%</td>
<td>4,6%</td>
</tr>
</tbody>
</table>
</figure>
<h2 class="wp-block-heading">ETFs Tracking The VIX Index </h2>
There are several ETFs available that track the VIX index. Here are a few examples:
<ol>
<li>ProShares VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXY#NYSE">VIXY</a>)</li>
<li>iPath Series B S&amp;P 500 VIX Short-Term Futures ETN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VXX#NYSE">VXX</a>)</li>
<li>VelocityShares Daily 2x VIX Short-Term ETN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TVIX#NYSE">TVIX</a>)</li>
<li>ProShares Ultra VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UVXY#NYSE">UVXY</a>)</li>
ProShares VIX Mid-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXM#NYSE">VIXM</a>) Photo: Shutterstock
</ol>

Intraday Update

TVIX

Barclays Bank iPath S&P 500 VIX Short-Term Futures ETN

Investor Anxiety Grows As VIX Index Records Dramatic Increase Amid Fed Rate Hike Concerns: Why Is Volatility Spiking Thursday?

The Chicago Board Options Exchange&rsquo;s CBOE Volatility Index (VIX), commonly known as the &ldquo;fear index,&rdquo; has recently plummeted to levels <a href="https://www.benzinga.com/trading-ideas/long-ideas/23/06/32778285/stock-market-volatility-continues-to-decrease-as-data-points-to-economic-slowdown">unseen since June 2021</a>.
The current low level of the VIX also aligns with the levels observed in February 2021, before the onset of the Covid-19 pandemic.
The substantial drop in volatility has ignited a notable upturn in the stock market during the past month, propelling the S&amp;P 500 index towards its highest point since August 2022 and driving the Nasdaq 100 index to over 12-month highs.
Analysts are cautioning investors to enjoy the low volatility momentum while it endures. Historical patterns indicate the likelihood of a resurgence in volatility in the upcoming months.
Also Read: <a href="https://www.benzinga.com/markets/equities/23/06/32773110/ai-powered-etf-dumps-nvidia-in-june-for-a-faang-stock">AI-Powered ETF Dumps Nvidia In June For A FAANG Stock</a>
VIX Index: 2023 in Review
The VIX index has steadily declined by 38% year to date, with a dramatic drop of over 50% since a mid-March spike caused by regional banking turmoil and the subsequent collapse of Silicon Valley Bank and Signature Bank.
To better understand the prolonged downturn phase, the VIX index currently stands 37% below its 200-day moving average and 20% below its 50-day moving average.
VIX Chart
<img alt="" class="wp-image-49251" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/08095445/VIX_2023-06-08_15-54-31_7840b-1024x557.png" style="height:435px; width:800px" />
The Warning Signs: Head of research at Topdown Charts, Callum Thomas, recently shared insights on LinkedIn, highlighting the VIX&rsquo;s consistent adherence to its seasonal pattern so far this year. According to historical data, volatility tends to begin rising from July through mid-October. Thomas sarcastically advised investors to &ldquo;enjoy low VIX while it lasts,&rdquo; hinting at a potential reversal in the near future.
Opportunities to Access the VIX Index: For investors looking to gain exposure to the VIX index, there are several ETFs available. These include the ProShares Trust VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXY#NYSE">VIXY</a>), the ProShares Trust VIX Mid-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXM#NYSE">VIXM</a>), and the ProShares Trust Ultra VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UVXY#NYSE">UVXY</a>), which offers a leveraged play on the VIX.
Read now: <a href="https://www.benzinga.com/news/23/06/32778040/wall-streets-most-accurate-analysts-say-hold-these-3-health-care-stocks-with-over-3-dividend-yields" rel="noreferrer noopener" target="_blank">Wall Street&rsquo;s Most Accurate Analysts Say Hold These 3 Health Care Stocks With Over 3% Dividend Yields</a>
Photo: Shutterstock

Signals

Trading Ideas

Stock Market Volatility Plummets To Pre-Covid Levels: Analyst Says 'Enjoy Low VIX While It Lasts'

The CBOE Volatility Index, <a href="https://www.benzinga.com/markets/22/05/27411613/a-breakdown-of-the-vix-index-s-p-500-index-relationship-and-how-it-can-be-better-understood">popularly known as the VIX,</a> settled below the 14 mark for the first time in more than three years.
What Happened: The VIX is one of the most commonly used measures of market sentiment and it is often used by traders as a tool for assessing risk. The VIX tracks the S&amp;P options market, where traders bet on the future direction of the index.
A rising VIX suggests professional traders are betting on wild swings in the S&amp;P 50 Index. On the contrary, a falling VIX reflects their expectations of relatively smaller moves and consequently a calmer market.
The ProShares Trust VIX Mid-Term Futures ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VIXM#BATS">VIXM</a>), an exchange-traded fund that tracks the S&amp;P 500 VIX Mid-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts, ended Tuesday's session at $22.59, down 3.67%, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data. </a>This marked its lowest level since March 2020.
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="476" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/07043526/vix-1024x476.png" alt="" class="wp-image-48570" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/07043526/vix-1024x476.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/07043526/vix-300x139.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/07043526/vix-768x357.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/07043526/vix-1536x714.png 1536w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/06/07043526/vix.png 1538w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Source: <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro</a>
See Also: <a href="https://www.benzinga.com/best-penny-stocks">Best Penny Stocks</a>
Analyst's Take: The VIX remained above the 14 levels for about three years and two months. Carson Group analyst Ryan Detrick said the previous longest streak the VIX was above the "14" mark was five, plus, years that ended on Aug. 13, 2012.
He noted that after that sub-14 print in 2012, the S&amp;P 500 Index gained 18.3% over the next year.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The VIX closed beneath 14 for the first time in more than 3 years today. Longest streak above 14 since 5 plus yrs ending 8/13/12. Did you know the S&amp;P 500 gained 18.3% the next year after that sub-14 print back then? Yeah, low volatility isn&#39;t always a bad thing.
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1666302045639376897?ref_src=twsrc%5Etfw">June 7, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The VIX has since then moved back above the 14 levels and traded up 2.08% at 14.25.
Tuesday's move below 14 suggests market participants are less concerned about the future direction of the market.
Despite the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/06/32706734/shock-jobs-data-could-hide-the-fact-that-a-recession-is-around-the-corner-warns-eco">uncertainties surrounding interest rates and recession,</a> key market gauges have remained resilient in recent sessions. The S&amp;P 500 Index ended Tuesday's session at 4.283.85, its highest closing since Aug. 16, 2022.
Read Next:<a href="https://www.benzinga.com/trading-ideas/long-ideas/23/05/32635294/the-vix-prints-reversal-candlestick-amid-key-discussions-on-debt-ceiling-a-technical-ana"> The VIX Prints Reversal Candlestick Amid Key Discussions On Debt Ceiling: A Technical Analysis</a>

VIX Closes Below 14 For First Time In Over 3 Years: What That Means For The Market

Media

On CNBC: Jon Najarian Highlights Massive Buying In VIX March $70 Calls

Pete Najarian ON CNBC: I Certainly Would Be Buying Volatility At This Level, And Also If We Get Down Towards 20

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Jon Najarian On CNBC: Falling COVID-19 Cases Could Send The VIX Down To 20 - In Other Words, Lower Volatility Is Very Unlikely, Thinks VIX Will Bounce Between 22 And 28

Comments

ProShares Trust VIX Mid-Term Futures ETF

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Ultime notizie per ProShares Trust VIX Mid-Term Futures ETF (BATS:VIXM)

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PARTNER/COLLABORATORE

BENZINGA NEL MONDO