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VIX Is Low, Futures Are High and Macro Risk Sees Opportunity

  • Volatility gauge hit three-month low earlier in the week
  • Investors watching U.S. election, trade tension, economy
Updated on

The divergence between short and long-term volatility is creating an opportunity for investors, according to some market participants.

The Cboe Volatility Index, or VIX, closed at a three-month low Wednesday, part of a trend of lower price swings across asset classes. It was at 12.41 as of 11:01 a.m. Friday in New York versus its year-to-date average of about 15.9. At the same time, futures on the gauge remain at elevated levels as investors factor in U.S.-China tension, an uncertain economic outlook and a presidential election involving candidates with extremely divergent views.