The Cboe Volatility Index jumped above 28 on Thursday as the S&P 500 fell 3%. Some traders argue the VIX should be even higher given the size of the index's drop.
The Cboe Volatility Index (VIX) jumped as much as 5.7 points to above 28 about 90 minutes after the opening bell on Thursday. It was the highest reading since March 31, the day after the S&P 500 bottomed following a selloff tied to tensions between Iran, Israel and the U.S.
From its intraday low to high, the VIX moved more than 11 points, its biggest one-day move since April 9. Few traders saw it coming, according to CNBC's reading of the options action.
S&P 500 heads for its worst decline since April 2025
The S&P 500 was headed for its worst decline since April 2025, down 3%.
Yet with that drop, there is an argument that volatility should be higher. Traders use a rule of thumb that 16 points for the VIX equate to a 1% move in the index.
Semiconductor selloff adds a wrinkle
Wednesday's move complicates the picture. With the VanEck Semiconductor ETF down 3%, it was the first day in market history that the VIX concurrently fell more than 4 points, according to data from the X account "OddStats."
As of midday, nearly 800,000 calls traded on the VIX, 3.5 times higher than the 30-day average, according to Cboe data.
Source: CNBC
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