Wall Street fear gauge closes at record high, again
NEW YORK (Reuters) - The index used as a chief indicator of Wall Street anxiety closed at another record high on Thursday, indicating investors remain as fearful as ever after U.S. stocks plunged for a seventh straight day.
The Chicago Board Options Exchange's Volatility Index, known in Wall Street parlance as simply "the Vix," shot 11.11 percent higher to end at 63.92. The index, which has never before traded above 60, rose to an intraday high of 64.92 before settling just 1 point below that.
The index measures the price of put options on the benchmark Standard & Poor's 500 index. Puts give investors the right to sell a security at a set price by a set future date, effectively serving as an insurance policy against declines in the index. As stock prices fall and investors grow more anxious, demand for puts rises, pushing up the price for that insurance.
(Editing by James Dalgleish)
