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 hedge against potential risks amid ongoing uncertainty regarding the Federal Reserve's interest-rate decisions. The low cost of S&P 500 put options further underscores this trend, as market participants seek to safeguard their portfolios in a stabilizing economic landscape.
The ProShares Trust Ultra VIX Short Term Futures ETF (UVXY) experienced a decline, closing at $18.87, down 1.97% from the previous day's close of $19.25.