The CBOE Volatility Index rose sharply yesterday, even though it was well off its session highs.
The VIX finished at 18.62, up 2.35 points, or 14.44 percent. It reached a high as 20.49 as the index saw its biggest spike in many months. This came as the S&P 500 fell below 1338 in the morning before recovering to close at 1350.52, down 12.14 points.
The August VIX futures were up 1.60 points, or 8.4 percent, to 20.75. The September futures rose 1.35 points, or 6.5 percent, while the October contracts gained 1.20 points to 23.85.
More than 327,000 VIX options traded, led by 258,000 calls. Not far behind were the iPath S&P 500 VIX Short-Term Futures ETN (VXX) options at 274,000, 155,000 of which were calls.
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