The CBOE Volatility Index (.VIX) is up 4.94 to 32.23 and not far from session highs (32.31). With not much else to work with, investors remain captivated by Bear Stearns. Much uncertainty remains after the conference call provided no concrete answers. Talk of takeover possibilities has been greeted with skepticism. Oppenheimer downgraded shares midday saying the stock might become ?worthless?. S&P downgraded their credit rating. So, with Bears dominating the headlines, and fear of more shoes falling from the ceiling, risk perceptions are rising. VIX options are seeing twice their normal volume, with more than 200,000 VIX calls traded and only 35,000 puts. The S&P 500 is down 32 points and, at 1283.36, is five points above its worst levels of the trading session.
Category: All Indexes
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.