VIX Surge to Four-Month High Draws Bets It’s Destined to Fall
- Evercore ISI says it could be time to “sell volatility”
- RBC recommends wager on reduced swings via ETF options
This article is for subscribers only.
Some strategists are recommending betting on a decline in volatility after a measure of implied equity swings for the S&P 500 index reached the highest level in more than four months.
The Cboe Volatility Index, or VIX, remains near its Wednesday closing level of 40.28 -- which was the highest since June 11 -- following an equity selloff this week that erased $1.6 trillion from the stock market gauge. Surging virus cases, fresh lockdowns in some nations and concern about a contested U.S. election result have all been cited as reasons for the drop in stocks.