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Falling Stocks Lead To Payoff On Wagers In The ‘Fear Gauge’: (TVIX) - (UVXY)

TedTed
in The Bullpen
FYI: Bets on Wall Street’s “fear gauge” paid off Friday as stocks tumbled.

The S&P 500 stock index fell 1.9% Friday, its biggest daily decline since January. The Cboe Volatility Index, called the VIX, measures the size and speed of stock market moves. It typically rises when stocks fall, making it an attractive form of insurance against sudden downturns. The VIX index jumped 21% Friday, while VIX futures contracts advanced 11%.

Exchange-traded products pegged to VIX futures also gained. The VelocityShares Daily 2x VIX Short-Term exchange-traded note, which seeks to double the daily return of VIX futures contracts, rose almost 21% Friday. The ProShares Ultra VIX Short-Term Futures exchange-traded fund, which aims for 1.5 times the daily performance of the futures, gained 17%.
Regards,
Ted
https://www.wsj.com/articles/falling-stocks-lead-to-payoff-on-wagers-in-the-fear-gauge-11553285101

M* Snapshot TVIX:
https://www.morningstar.com/etfs/xnas/tvix/quote.html

M* Snapshot UVXY:
https://www.morningstar.com/etfs/ARCX/UVXY/quote.html
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