The Second Hottest Year For VIX in a Decade

Looking back a decade, the VIX tends to rise in the second half of the year

by Alex Eppstein |

Published on Apr 12, 2017 at 10:34 AM
Updated on Apr 18, 2017 at 8:58 AM

The CBOE Volatility Index (VIX) has been soaring lately, amid troubling geopolitical developments in Syria and North Korea. Yesterday, we looked at what the VIX spike could mean for stocks going forward. Today, our attention is drawn to an interesting historical development on the stock market's "fear gauge."

Specifically, the VIX is up 3.5% today at 15.59, bringing its 2017 lead to 11.4%. According to Schaeffer's Quantitative Analyst Chris Prybal, this is the second largest percentage gain for this point in the year, when surveying data from the past decade. The only year in which the VIX was up more year-to-date than it is so far in 2017 was 2014, with most other years actually sporting negative returns. As Prybal notes, "Over the past 10 years, volatility has tended to spike later in the year, as opposed to the first half -- apart from 2010."

cboe volatility index vix chart over 10 years

JOIN FREE

Get Schaeffer's Opening View every morning before the bell rings.


MORE | MARKETstories


2 Stocks Tanking After Earnings
Atlassian stock is at a record high after an encouraging earnings report
Understanding In-, At-, and Out-of-the-Money Options
The pros and cons of buying ITM, ATM, and OOTM calls and puts
Bullish Options Traders Cheer On Rallying Box Stock
The tech stock has seen heavy call buying recently
The S&P is Blazing Its Hottest Streak in 4 Years
The stock market index could extend its string of record highs, if past is prologue

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

TRADING SERVICES | FEATUREDproducts


By MG 2016
In March of 2016, I was introduced to Expiration Week Countdown.  The results are better than words!
Options trading made simple.
Schaeffer's Investment Research, Inc. is dedicated to providing subscribers advantages in options trading and investing.  Our independent market research services create profitable opportunities for investors at every level.