The Chicago Board Options Exchange (CBOE) Volatility Index ("VIX") is trading at levels not seen since 2007.
The VIX is 25 percent below its long-term average of 20.
As discussed in a recent Wall Street Journal article, part of the recent dip is a result of a procedural quirk triggered by some investors selling contracts before the long weekend that just passed.
Although current prices reflect little concern about volatility, VIX futures contracts suggest that stock market volatility could increase as much as 60 percent in the next six months.
Current VIX prices could present an interesting buying opportunity for those interested in relatively inexpensive downside protection.
Source: Wall Street Journal
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