VIX Contracts at Record as Traders Lock in Stock Gains: Options
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Investors are boosting options and futures wagers based on U.S. equity-market volatility to a record to protect gains after the Standard & Poor’s 500 Index jumped to an almost five-year high.
The number of futures on the Chicago Board Options Exchange Volatility Index, or VIX, has more than tripled to 411,407 this year, according to data compiled by Bloomberg. Outstanding options on the gauge, which tracks the cost of insuring against S&P 500 losses, has more than doubled to 7.48 million in 2012. The level is close to the peak reached last month.