The S&P closed lower for the fifth consecutive trading session. Finishing down -.4% at 1,785.03.
Gold had another tough day of trading, dropping -1.86%.
The $VIX or “Fear Index”, an index
that tracks S&P volatility and option premiums, rose to highs that haven’t been seen since mid-October. When the VIX rises, options traders are pricing in uncertainty and market volatility, which is often accompanied by market sell-offs.
It’s expected that the VIX will rise on days when the market falls, but we’re seeing a considerable jump in premium priced into this latest move. Do options traders have the right idea for the next 30 days of trading?