Global Stock Volatility Soars as Sleepy VIX Awakens on Greece
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Gauges of stock volatility surged around the world as the weekend meltdown in Greece collided with China’s market unraveling and traders bought hedges to stanch the bleeding.
The Chicago Board Options Exchange Volatility Index surged 35 percent, its biggest increase in two years, while a gauge of European share swings climbed 15 percent to an eight-month high. The surge shook U.S. traders out of a six-month-long slumber in which daily changes in the S&P 500 failed to exceed 2 percent for the longest stretch since 2007.