Thursday October 29, 09:52 PM
STOCKS NEWS US-Volatility index dips, intraday swings return
Stocks on the move
Real (Frankfurt: BJU.F - news) -time Equity news
U.S. stock market report
1728 ET 29Oct2009 Volatility index drops sharply, intraday swings return
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The CBOE Volatility Index, Wall Street's favorite barometer of investor
sentiment, stood at 24.76, down 11.29 percent, its biggest daily percentage
slide in eight months.
The VIX is a 30-day risk forecast priced off of S&P 500 index and
often moves opposite to the S&P benchmark.
Today's GDP data drove a steamroller over this week's gains in the VIX as
option premiums came down significantly. U.S. stocks rallied, bolstered by GDP
data showing the U.S. economy returned to growth in the third quarter and
fueling hopes of a sustained rebound in corporate profits. Intraday swings have
made a return, prompting investors to be more cautious and have driven up put
and call option premiums over the past four sessions, said Andrew Wilkinson,
market analyst at Interactive Brokers Group. 'We are in a period of great
uncertainty as to how the market will finish in 2009,' said Joe Kinahan, chief
derivatives strategist at TD Ameritrade (NASDAQ: AMTD - news) .
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