VIX Bets Surge Amid Biggest Stock Swings Since October
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Traders trying to protect themselves from the wildest fluctuations in U.S. stocks since October are turning to advanced weaponry: options on options.
More than 1 million contracts tied to moves in the Chicago Board Options Exchange Volatility Index have changed hands each day since Dec. 10, the most since mid-October, data compiled by Bloomberg show. Contracts on the VIX amount to bets on stock volatility that pay off when swings in shares are at their most violent.