Unusual moves in volatility markets have raised concerns about record bets on continued calm in U.S. stocks. But fear not: a return of February 2018’s “Volmageddon,” when several short-volatility funds blew up, is unlikely. Prices for the Cboe Volatility Index or VIX, which measures expected equity volatility, jumped Tuesday as U.S. shares dropped. Notably, too, VIX futures that expire at the end of this month ended the day costing more than those expiring in June and July.

Source: Wall Street Journal May 08, 2019 04:41 UTC