Exchange traded funds that track the CBOE Volatility Index, or “VIX,” are moving lower, with options traders growing more complacent on the Syrian crisis after Russia spearheads a peaceful resolution.
The iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca: VXX) was down 2.8% Tuesday.
Earlier this week, U.S. Secretary of State John Kerry raised a hypothetical argument that illustrated an unlikely event where Syria would immediately relinquish all of its chemical weapons.
In response, Russia, along with Syria, jumped on the idea and issued a statement for peaceful talks over handing over Syrian chemical stockpiles.
“We fully support Russia’s initiative concerning chemical weapons in Syria, and we are ready to cooperate,” Syrian Foreign Minister Walid Muallem said, reports USA Today. “We will open our storage sites, and cease production. We are ready to open these facilities to Russia, other countries and the United Nations”
The VIX, or “fear gauge,” declined 5.2% Tuesday and is trading at 14.8. The index has historically traded in a range between 15 and 20.