Volatility Rules as Fed Provides No Bad-Day Buffer to Stocks
- VIX increases the most in a month as investors avoid risk
- S&P 500 put/call ratio has biggest five-day jump since 2009
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Investors seeking a silver lining on bad days for stocks aren’t finding it in the Federal Reserve.
The Chicago Board Options Exchange Volatility Index jumped the most since August’s selloff on Tuesday as companies from energy to autos slumped. The ratio of puts to calls on the Standard & Poor’s 500 Index has surged 12 percent over the past week, signaling investor appetite for protection against losses. That’s the most pronounced five-day jump since 2009, with the biggest increase coming the day after the Fed’s rate decision last week.