VIX Bets Post Biggest Rally in 7 Weeks as S&P 500 Drops
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Traders who made record bets on securities that track U.S. stock volatility scored the biggest gains in almost two months yesterday as equities plunged.
The iPath S&P 500 VIX Short-Term Futures exchange-traded note climbed 12 percent to $20.52 and the ProShares Ultra VIX Short-Term Futures ETF soared 23 percent to $7.75, according to data compiled by Bloomberg. Both increases were the biggest since Feb. 25. The rallies came as the Standard & Poor’s 500 Index slumped 2.3 percent to 1,552.36 and the Chicago Board Options Exchange Volatility Index increased 43 percent.