This Week in VXST – 8/15/2014

VXST was displayed the expected amount of calm over a week where the S&P 500 rose over 1%. The only real excitement came via a little noise on Friday morning. After a bit of a swoon and by the end of the day the S&P 500 was almost unchanged. I guess the time frame for recovery from international events is now down from a day or two and can be measured in hours.


The VXST curve moved in sync with the index and shifted lower. The September 10th contract started trading on Thursday and I was really looking forward to seeing how that contract was priced relative to the other futures. The monthly employment number that always catches the attention of the investment world comes out on September 5th so the relative pricing of the September 10th contract can be an indication of how the market is discounting the risk of a big move around this economic report. It appears from the curve below that traders are more concerned with the last few weeks of summer than what may come from the jobs report.