PRESS ROOM
VIX spike settles quickly
Thursday 04th February '21
Since recovering from its large spike in March last year, the CBOE Volatility Index (VIX) has generally been steady. The measure of stock market volatility has experienced a few short and sharp increases since then, like aftershocks of a major tremor. One such spike manifested in the last few days of January coinciding with trading activity driven by discussions on the social media platform Reddit. VIX, which spiked to around 37 on 27 January, returned to levels below 25 as of 03 February. The VIX futures curve is currently in contango up to April 2021, i.e., markets are pricing volatility to rise slightly over the next three months.