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VIX Hits Seven-Week High Even as Bets Jump on Post-Election Calm

A surge in the polls for Joe Biden has prompted traders to pull back from bets on prolonged uncertainty.

A surge in the polls for Joe Biden has prompted traders to pull back from bets on prolonged uncertainty.

Photographer: Drew Angerer/Getty Images

The Cboe Volatility Index climbed to its highest since early September on Monday, but traders continued to pile into bets on its eventual demise.

A sell-off in U.S. stocks amid the stimulus stalemate and resurgent coronavirus helped push the VIX up almost 5 points to 32.5 -- a level not seen since Sept. 8. But the 10-day moving average of total put volume relative to total call volume for the gauge -- a measure of demand for short volatility bets -- extended its recent rise to the highest in 14 years, according to data compiled by Bloomberg.