The bout of turbulence that’s pushed up the VIX in the past two days is stabilizing a relationship that had reached an extreme.
The Cboe VVIX Index, a measure of VIX options costs, is now at its lowest level since August relative to the Cboe Volatility Index.
The gauge of stock turbulence surged 34 percent this month through Tuesday, almost three times more than the VVIX, sending the ratio between the two closer to the average over the past two years.
Source: Bloomberg Pro Terminal
Trader-G.Bozhidarov
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