Small-Cap VIX Up 11% Echoes Fed Concern for Valuations
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Options traders are showing signs they agree with the Federal Reserve about small-cap stocks.
The Chicago Board Options Exchange’s Russell 2000 Volatility Index is up almost 11 percent this year, compared with a 6.6 percent drop in the VIX, which tracks the cost of protecting against losses in the Standard & Poor’s 500 Index. The small-cap measure last week reached the highest level since 2006 relative to the gauge known as the VIX, data compiled by Bloomberg show.