Volatility Warnings Signal Virus May Bring Another Rough August
- Tallbacken sees cause for concern in VIX making higher lows
- RBC suggests Amazon put options as delta-variant hedge
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Concerns about the delta variant of Covid-19 look to be seeping into volatility markets just as the traditionally challenging month of August kicks off.
The Cboe Volatility Index, or VIX, has made a series of higher lows in recent weeks, a pattern Tallbacken Capital Advisors LLC Chief Executive Officer Michael Purves says should concern investors. It’s one of two “yellow warning lights” he sees, with the second being the way high-yield spreads have become “stickier” at higher levels.