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 drop in the VIX aligns with a rise in the S&P 500 Index, which gained 0.82% to close at 6084.19. The market's optimistic sentiment is further evidenced by the significant trading volume of VIX Dec 2024 14.000 puts, indicating a focus on downside protection amid ongoing uncertainties regarding the Federal Reserve's interest-rate decisions. The low cost of S&P 500 put options suggests that traders are actively seeking to hedge against potential risks while capitalizing on a stabilizing market.
The ProShares Short VIX Short Term Futures ETF (SVXY) experienced a modest increase, closing at $53.50, up 0.45% from the previous day's close of $53.26.