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UVXY Drops 3.35% as VIX Declines Amid Eased Market Concerns

The CBOE Volatility Index (VIX) saw a significant decline of 8.37% to close at 15.77, reflecting a temporary easing of market concerns and increased confidence among investors. This drop in the VIX coincided with a 0.39% rise in the S&P 500 Index, suggesting reduced volatility expectations as the market digests ongoing tax and spending negotiations in Washington. The fiscal policy outcomes remain a critical factor for future market sentiment, but for now, the decrease in the VIX indicates a more stable outlook. The most notable trade was the VIX Feb 2025 19.000 call, with a volume of 15,893 contracts, highlighting continued interest in hedging against potential future volatility.

The ProShares Trust Ultra VIX Short Term Futures ETF (UVXY) experienced a decline, closing at $18.46, down 3.35% from the previous close of $19.10, and further slipping to $18.43 by 16:40 on Wednesday, February 5.