The stock market’s volatility gauge is near an 18-month low.
Why aren’t debt-ceiling, recession and banking fears taking a bigger toll?
Investors have also questioned whether the VIX is still relevant, particularly amid a surge in trading of option contracts with one day or less left until they expire. Traders call these products “0DTEs,” short for zero days until expiration.
Cboe Volatility Index a closely watched measure of expected stock-market volatility sometimes referred to as Wall Street’s “fear gauge,” closed Friday at a nearly 18-month low.
Cboe on Monday unveiled a new 1-day VIX gauge, called the Cboe 1-day Volatility Index, designed to track implied volatility based on soon-to-expire options. That gauge, which has yet to build a record, has traded in a range between 15.59 and 8.55 this week, and was near 13.45 late Friday
I wonder if Friday's "unusual" VIX activity may have been caused the new one day VIX...maybe as a hedge against the regular VIX?
Edited by Rogerdodger, 29 April 2023 - 08:56 PM.