Nomura’s McElligott Flags ‘Panic’ With Fear Gauge at Highs
Traders work in the Cboe Volatility Index options pit at the Cboe Global Markets exchange in Chicago, Illinois, on April 8.
Photographer: Jim Vondruska/BloombergThe cost of hedging against market turbulence is surging, with the Cboe VVIX Index ending Tuesday at its highest since August relative to the VIX.
The VVIX, a measure of Cboe Volatility Index options prices and so-called vol-of-vol, jumped more than 73 points in the past five days. By contrast, the VIX, known as Wall Street’s fear gauge, climbed about 31 points in four days.