VIX Didn’t Update for 30 Minutes as Options Quotes Got Erratic
2015-08-24 15:03:17.843 GMT
By Callie Bost
(Bloomberg) -- For a brief period this morning, anxiety got
too high to measure in the U.S. options market.
The Chicago Board Options Exchange Volatility Index failed
to update for about 30 minutes after the open of stock trading
at 9:30 a.m., data sent to Bloomberg show. Trading in the
options from which the VIX is derived was too disjointed to
calculate a value, its overseer said.
“Because of market conditions, the quoting in S&P 500 and
S&P 500 options was erratic,” said Suzanne Cosgrove, a
spokeswoman for the CBOE. “As more people resume quoting, it’ll
level out.”
In times of stress, traders use the VIX to gauge levels of
market turbulence. The gauge reflects the cost of options that
are used, among other things, to protect against losses in
shares, so its level is viewed to gauge how cautious investors
are toward equities.
Today, they are very cautious. The Standard & Poor’s 500
Index plunged more than 5 percent in the first minutes of
trading as a global rout in risk assets circled the globe for a
third day. The VIX’s highest recorded level of the day was 53.29
-- at one minute before 10 a.m.
As of 11:00, selling had diminished, the S&P 500 had cut
its worst losses in half, and the VIX was at 36.47.
For Related News and Information:
After Months in Denial VIX Hears Signals Sent by Other Markets
Momentum Trade Gives Evidence of Its Own Mortality: A Down Week
Tension Runs High in VIX as Stock Insurance Costs Most Since ’06
VIX Most-Traded Options: VIX INDEX OMST <GO>
Options Market Analysis: NI OMA <GO>
Top Stories on Stocks: TOP STK <GO>
Feature Stories on Stocks: TNI STK GREET <GO>
To contact the reporter on this story:
Callie Bost in New York at +1-212-617-3495 or
cbost2@bloomberg.net
To contact the editors responsible for this story:
Jeff Sutherland at +1-212-617-6567 or
jsutherlan13@bloomberg.net
Chris Nagi
2015-08-24 15:03:17.843 GMT
By Callie Bost
(Bloomberg) -- For a brief period this morning, anxiety got
too high to measure in the U.S. options market.
The Chicago Board Options Exchange Volatility Index failed
to update for about 30 minutes after the open of stock trading
at 9:30 a.m., data sent to Bloomberg show. Trading in the
options from which the VIX is derived was too disjointed to
calculate a value, its overseer said.
“Because of market conditions, the quoting in S&P 500 and
S&P 500 options was erratic,” said Suzanne Cosgrove, a
spokeswoman for the CBOE. “As more people resume quoting, it’ll
level out.”
In times of stress, traders use the VIX to gauge levels of
market turbulence. The gauge reflects the cost of options that
are used, among other things, to protect against losses in
shares, so its level is viewed to gauge how cautious investors
are toward equities.
Today, they are very cautious. The Standard & Poor’s 500
Index plunged more than 5 percent in the first minutes of
trading as a global rout in risk assets circled the globe for a
third day. The VIX’s highest recorded level of the day was 53.29
-- at one minute before 10 a.m.
As of 11:00, selling had diminished, the S&P 500 had cut
its worst losses in half, and the VIX was at 36.47.
For Related News and Information:
After Months in Denial VIX Hears Signals Sent by Other Markets
Momentum Trade Gives Evidence of Its Own Mortality: A Down Week
Tension Runs High in VIX as Stock Insurance Costs Most Since ’06
VIX Most-Traded Options: VIX INDEX OMST <GO>
Options Market Analysis: NI OMA <GO>
Top Stories on Stocks: TOP STK <GO>
Feature Stories on Stocks: TNI STK GREET <GO>
To contact the reporter on this story:
Callie Bost in New York at +1-212-617-3495 or
cbost2@bloomberg.net
To contact the editors responsible for this story:
Jeff Sutherland at +1-212-617-6567 or
jsutherlan13@bloomberg.net
Chris Nagi