VIX Clings to Stocks Like It’s 2007 as S&P 500 Peaks
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Historical relationships between U.S. equity and options prices have come under increasing strain in the past week, with the record rally in the Standard & Poor’s 500 Index awakening demand among both speculators and hedgers.
The Chicago Board Options Exchange Volatility Index moved in the same direction as the S&P 500 for four straight days through April 29, including three advances and one drop. That’s the longest stretch of lockstep moves since February 2007, according to data compiled by Bloomberg. The indexes swing in the opposite direction about 80 percent of the time.