Barclays Sees VIX Rebound With Risk Premium at Bull Market Low
- Spread between VIX and realized volatility smallest since 2009
- The volatility gauge has slipped 60 percent since August rout
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The U.S. stock market is quiet -- too quiet.
One example is the price investors are paying for options on the Standard & Poor’s 500 Index, a value that is captured by the Chicago Board Options Exchange Volatility Index. At present, options dealers are charging so little for protection in equities that the VIX is trading at a six-year low compared with the actual volatility of the benchmark gauge.