Many investors noted the lack of volatility in the broad stock markets in 2012 – the CBOE Volatility Index® (VIX®) Index had an average daily closing value of 17.82 for the year, the lowest such value since 2007.
Some tech stocks experienced more volatility than the S&P 500 in 2012. For example, Apple (AAPL) experienced a big rise in the first three quarters, but then faced some challenges in the fourth quarter as there were poor reviews for the Apple Maps application on a new iPhone, and continued enhanced competition for the smartphone and tablet markets.
Here are the average daily closing values in 2012 for four volatility indexes designed to reflect expected volatility for key tech stocks —
36.35 VXAZN – CBOE Equity VIX® on Amazon www.cboe.com/VXAZN
32.52 VXAPL – CBOE Equity VIX® on Apple www.cboe.com/VXAPL
28.01 VXGOG – CBOE Equity VIX® on Google www.cboe.com/VXGOG
20.25 VXIBM -CBOE Equity VIX® on IBM www.cboe.com/VXIBM
These indexes can serve as helpful intraday or longer-term gauges of changes in implied volatility.
AAPL was up 31.4% in 2012, as it experienced a wide range of closing prices throughout the year, with a high daily close of $702.10 and a low daily close of $405.00.
To learn more about more than 20 volatility indexes at CBOE, please visit www.cboe.com/volatility.