The CBOE Volatility Index finished on Friday just above its session low as the S&P 500 surged to close at its high of the day.
The VIX finished up at 21.11, down 0.57 points, or 2.63 percent. It had held the 22 level until the last hour of trade. The S&P 500 climbed throughout the day, finishing 13.74 points higher at 1342.84. The two indexes typically move inversely.
The June VIX futures fell hard in the last 5 minutes and ended down 1.40 points, or 6.1 percent, to 21.55. The July futures did the same, ending down 1.45 points, or 5.8 percent, to 23.65.
More than 682,000 VIX options traded, with puts continuing to outpace calls. The iPath S&P 500 VIX Short-Term Futures ETN (VXX) saw similar action, with 376,000 contracts and 202,000 puts.
All of this action speaks to very bullish sentiment, which is actually disconcerting given the global uncertainties heading into the weekend. It seems that traders are counting on either a positive resolution or government intervention.
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