Today was one of the ugliest days in the market in a long, long time. The Dow closed down 504 points. The S&P500 plunged 4.6%, the worst day since right after the 9/11 attacks. The CBOE SPX Volatility Index, or VIX, soared six full points to 31.70. Long bond futures skyrocketedby 3 23/32 in price, while 2-year Treasury Note yields plunged a whopping 47 basis points to 1.73%. This just goes toshow why inverse ETFs and put options are a vital investment tool in markets like these.
More on this topic
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What I Learned from Last Year's Market Massacre: Protect with VIX Call Options
(Hot Trading Strategies For A Col..., 9/13/09)
VIX Fixation
(Condor Options, 8/12/09)
Why do VIX Futures Remain High?
(Condor Options, 7/30/09)
VIX Volatility Foreshadows a September Sell Off
(Wealth Daily, 8/11/09)
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