Stock Rout Shatters Years of Calm in Markets
- Some are seeking clues in rates for where volatility goes
- Options are still trading mostly in lower strike ranges
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The Cboe Volatility Index reached its highest level since August 2015 on Monday, sailing to its biggest increase on record as U.S. stocks extended last week’s meltdown.
The VIX more than doubled from Friday’s close, reaching 38.80 at its highest point before closing at 37.32. Those are staggering figures given the historically low volatility of recent years. Since 1990, the index’s average has been 19.3, but during the past three years of market calm, that number has been below 13.