Lowest Volatility of Volatility Since May Is Warning Sign: ChartBy
The stock rebound has sent the Chicago Board Options Exchange Volatility Index to its lowest level of the year -- and the VVIX Index, which represents its expected volatility, to its lowest since May. Part of the reason is because trading on some VIX products has been declining, according to Louis Capital Markets cross-assets salesman Anthony Benichou in London. At the same time, equities have rallied despite no fundamental changes in the environment, and with the earnings trend deteriorating, the VVIX appears to be too low, he said.
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