The CBOE Volatility Index (VIX) saw a notable decline of 4.23% to close at 13.58, reflecting a market environment characterized by increased confidence and reduced volatility. This movement aligns with the S&P 500 Index's rise of 0.82%, suggesting that investors are feeling more optimistic about the market's near-term prospects. The significant trade volume in VIX Dec 2024 14.000 puts indicates a strategic focus on downside protection, as traders continue to hedge against potential risks despite the overall stabilizing market conditions. The reduced cost of S&P 500 put options further underscores this trend, as market participants seek to safeguard their portfolios amid ongoing uncertainties related to the Federal Reserve's interest-rate policies.
The VS TR -1x Short VIX Futures ETF (SVIX) experienced a rise of 1.09% to reach $29.67 at 4:40 PM on Wednesday, December 11.