CBOE VIX Index Spikes, But Still Below Crisis Highs

The CBOE Volatility Index spiked today as the stock market tanked.

The VIX hit an intraday high of 31.06, up 36 percent on the day.  As the stock market pared losses, with the Dow Jones Industrial Average erasing almost 300 point of losses, to close near 173 on the day, the VIX likewise retraced near the end of trading and ended the day just below 25.

Rise in the VIX comes as the index hit a low near 10.2

The rise in the VIX, which measures options trading activity to determine a level of “fear” in the market, comes as the index hit a low near 10.2 in early July.  The 150 percent move in the VIX is stunning, its highest level since...