Prepare for a new high-volatility market regime

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Breaking News: Markets News

Markets,CBOE Volatility Index,Business News

Katie Stockton breaks down the CBOE Volatility Index.

It's not every day that you see the Cboe Volatility Index — market's 'fear gauge' — spike above 25, much less 65. When it does, it suggests fears are running exceptionally high based on real-time pricing of S & P 500 Index options. The 'VIX' touched 65 briefly before retreating in Monday trading. Often, spikes in the VIX are harrowing for investors because it means that the inversely correlated S & P 500 is trading off, in this case as much as 4.2% intraday.

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