Options fear gauge surges to new high on credit woe
CHICAGO, Oct 6 (Reuters) - The Chicago Board Options Exchange Volatility Index .VIX, Wall Street's favorite measure of investor fear, jumped past a 50 reading early on Monday, an historic high, as U.S. stocks fell on heightened credit concerns.
The VIX soared 12.16 percent to 50.63, a new intraday high since CBOE remodeled the fear gauge in 2003 to provide a more precise reading on stock market conditions.
The exchange changed the old index on which the VIX was based to the prices of the more popular Standard & Poor's 500 index .SPX options from options on the S&P 100 index .OEX. The VIX reflects investors' consensus about expected stock market volatility over a 30-day period.
The original VIX was created in 1993.
"The VIX is higher as global stock markets fall on concerns that the financial crisis is growing worse despite U.S. government efforts to ease the strain," said Frederic Ruffy, options strategist at Website WhatsTrading.com. (Reporting by Doris Frankel; Editing by James Dalgleish)
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