FYI: Options just got a lot more expensive. An escalation of the trade war between the U.S. and China sent stocks plunging and volatility surging on Monday, boosting the cost of options on stocks and ETFs.
The CBOE Volatility Index (VIX), which measures the “implied volatility” of S&P 500 Index options based on how much investors are willing to pay for them, jumped to nearly 25, its highest level since early January.
Implied volatility is a key determinant of an option’s price. A VIX of 25 means that S&P 500 Index options are roughly 65% more expensive than their five-year average and 45% more expensive than their 10-year average.
Regards,
Ted
https://www.etf.com/sections/features-and-news/etfs-most-liquid-options
