With the European Union facing a potential secession by Britain this week, a measure of short-term stock swings has surged to levels not seen since August, relative to the Chicago Board Options Exchange Volatility Index. The CBOE S&P 500 Short-Term Volatility Index, which uses S&P 500 options to track expectations for moves in the next nine days, has jumped 87 percent this month, compared with a 23 percent gain in the VIX. Macro Risk Advisors strategists say the VIX is too low and options traders are underpricing the risk of a British exit from the EU.
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