Options Traders Crowd Into VIX Bets -- WSJ

Dow Jones03-04

By Krystal Hur

The Cboe Volatility Index, or VIX, jumped to its highest level of the year on Tuesday. Traders are betting it will keep rising.

President Trump's tariffs and retaliatory action from the U.S.'s top trading partners rattled markets on Tuesday. That has pushed up the VIX, which measures expectations for where the market is headed through S&P 500 options.

Options traders also jumped into action. Trading volumes for call options tied to the VIX were at their highest level since early September, according to Cboe Global Markets data. Calls confer the right to buy a stock at a set price.

Some of the most actively traded VIX options contracts would pay out if the index jumps to 60 and 75. The VIX is currently trading at about 22.78, down from its session high of 26.35.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

March 04, 2025 15:51 ET (20:51 GMT)

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