OCT. 28 – On Friday afternoon a news story at wsj.com<http://blogs.wsj.com/moneybeat/2016/10/28/markets-rattled-by-fresh-fbi-review-of-clinton-email/?mod=djemalertMARKET> noted that –

“Worries about a surprise election outcome resurfaced anew in financial markets on Friday afternoon after the Federal Bureau of Investigation uncovered new evidence in its investigation of Democratic presidential candidate Hillary Clinton‘s email server. … The news sent ripples through stocks, currencies and commodities in afternoon trading. The S&P 500 slumped to the day’s lows in recent trading and the CBOE Volatility Index, the market’s “fear gauge,” shot to its highest level in six weeks. …”

FIVE CHARTS SHOW PRICE MOVES ON FRIDAY AFTERNOON

The CBOE VIX of VIX Index (VVIX)<http://www.cboe.com/micro/vvix/> is an indicator of the expected volatility of the 30-day forward price of the VIX. www.cboe.com/VVIX<http://www.cboe.com/VVIX>. The prices of VIX options<http://www.cboe.com/micro/vix-options-and-futures.aspx> are used in the VVIX calculation. On Friday afternoon the VVIX Index had a quick rise of more than 21% to an intraday high of 106.66.

a-vvix-oct-28

The popular CBOE Volatility Index® (VIX®)<http://www.cboe.com/micro/vix-options-and-futures.aspx> also spiked Friday afternoon. The VIX Index ranged from a low of 14.65 to a high of 17.35 during the trading day.

b-vix-on-oct-28
While many folks follow the VIX Index, volatility traders often focus more on tradable instruments such as the VIX futures<http://www.cboe.com/micro/vix-options-and-futures.aspx>. The VIX November futures<http://www.cboe.com/delayedquote/ssfquote.aspx> (expiring on Nov. 16<http://www.cboe.com/delayedquote/ssfquote.aspx?ticker=VIX/X6>) also spiked mid-day Friday, and during the Friday trading session (which runs more than 23 hours) the VIX November futures prices ranged from a low of 15.74 to a high of 17.08.

c-vix-nov-futures

The S&P 500® Index (SPX)<http://www.cboe.com/micro/spx/introduction.aspx> had a drop of about 20 points mid-day Friday, and for the entire day the index was down 6.63 points. d-spx-on-oct-28

A Bloomberg report<http://www.bloomberg.com/news/articles/2016-10-27/yen-weakness-seen-boosting-japan-stocks-as-asia-pauses-on-fed> noted that “American equities erased gains and Mexico’s peso, which is seen as a proxy for market perception on the U.S. vote, declined against most major currencies. …”

e-peso

MORE INFORMATION

Visit the Product Specific Strategies<http://www.cboe.com/strategies/products.aspx> section of the CBOE website to learn more about how index options can help you manage your investment portfolio.