Fear gauge VIX tops 28 in biggest daily jump since April
The VIX volatility index jumped 5.7 points to above 28 in its biggest daily move since 9 April, with about 800,000 call contracts traded by midday.
The VIX volatility index jumped about 5.7 points to above 28, its highest level since 31 March.
The index moved more than 11 points during the session, the largest daily move since 9 April.
The S&P 500 fell about 3%, and traders pointed to a rough rule linking every 16 points in the index to a 1% move in the market.
Investors traded about 800,000 call contracts on the index by midday, 3.5 times the 30-day average.
What do these terms mean?
VIX volatility index: An index measuring expected volatility in the US market over 30 days, also known as the fear gauge.
Call contract: An options contract giving its holder the right to buy an asset at a specified price at a later date.
Volatility: The speed at which market prices change up and down over a period of time.
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