GVZ was the only volatility index in the tradable universe that gained last week. Of course it was very debatable what the outcome would be for the week as GVZ rose 0.07% or 0.01 on the week. Let’s call that barely up on the week. The inaction in GVZ is a reflection of the price of gold continuing to be range bound. Eventually a break is going to happen and the futures premium indicates there is some positioning for such a move. Remember a move up or down in GLD can result in GVZ moving up.
Oil continues a march back to $100 in a very orderly fashion. The USO Exchange traded fund was up 2% an oil futures contracts gained on the day as well. Since the move higher in the price of oil is more of a grind than spike, OVX has come under some pretty intense pressure. For a good part of 2012 OVX was at a significant premium to the other volatility indexes. With what appears to be relative calm in the Middle East along was a slowly improving economic environment the fear factor has come out of the options that base performance on the price of oil.