The VIX initially spiked following speculation over a military response to Syria’s alleged chemical weapons use.[VIX ETF Going for First Three-Day Up Streak Since May]
September has historically been the worst month for stocks. Some options traders are looking at the equity put-call ratio, which was at 0.5 last Friday, a low seen only four times since early 2011, writes Andrew Kassen for ETF Daily News. The high ratio suggests that the “rubber-band of enthusiasm for long equity calls is poised to snap back, with deeper stock market correction to follow,” Kassen said.
For more information on the CBOE Volatility Index, visit our VIX category.
Max Chen contributed to this article.