VIX Surges as Traders Bet on Continued Volatility
The Cboe Volatility Index (VIX) climbed above 22 for the first time in four months, driven by a sell-off in AI-related stocks and concerns over CoreWeave. Large trades involving November VIX call options suggest traders expect volatility to persist through mid-November. One trader purchased nearly $3 million worth of calls betting that the VIX will remain above 23 into early November. Analysts note this activity reflects a shift in hedging strategies as investors prepare for potential market downturns following recent AI sector turbulence and Nasdaq losses. The broader market faces key tests next week with earnings reports from Tesla, SpaceX, and Meta looming.
Topics: AI stocks Nasdaq decline options trading VIX