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VIX Futures Collapse as Bets Disappear on Rise Above 30: Options

Futures tied to investor expectations for stock swings next year are posting record declines after European leaders agreed on a plan to contain the region’s debt crisis.

The average price of contracts on the Chicago Board Options Exchange Volatility Index for March through June plunged 8.7 percent in the past two days, the biggest drop on record, according to data compiled by Bloomberg. VIX futures of all maturities fell below 30 yesterday, the first time that’s happened since Aug. 17, the data show.