Nomura’s McElligott Flags ‘Panic’ With Fear Gauge at Highs
Traders work in the Cboe Volatility Index options pit at the Cboe Global Markets exchange in Chicago, Illinois, on April 8.
Photographer: Jim Vondruska/BloombergThis article is for subscribers only.
The cost of hedging against market turbulence is surging, with the Cboe VVIX Index ending Tuesday at its highest since August relative to the VIX.
The VVIX, a measure of Cboe Volatility Index options prices and so-called vol-of-vol, jumped more than 73 points in the past five days. By contrast, the VIX, known as Wall Street’s fear gauge, climbed about 31 points in four days.