For those looking into VIX contracts to bet on the future of stock swings, now may be a good time. While the Cboe Volatility Index has doubled this year, a gauge tracking the cost of its options has climbed much less. The Cboe VVIX Index is now at its lowest level since 2016 relative to the VIX, indicating that contracts on the volatility benchmark are on the cheap side.
The VVIX is a volatility of volatility measure in that it represents the expected volatility of the 30-day forward price of the CBOE Volatility Index (VIX INDEX).
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