With the CBOE Volatility Index climbing so much so fast — more than twofold over six days to about 25 as of Thursday — a separate gauge tracking the cost of its options has barely had a chance to catch up. The CBOE VVIX Index is at its lowest level since April relative to the VIX and well below the two-year average ratio. That suggests that contracts on the gauge of stock swings are on the cheap side, given the VVIX’s 51 percent gain over the same six-day period.
Well at least the Dow had a “Dead Cat Bounce” today.
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