VIX swings 6.49% intraday to close at 15.74 on June 4

The CBOE Volatility Index swung 6.49% intraday on June 4, closing at 15.74 after touching a high of 16.80 and a low of 15.74.

"The VIX's intraday reversal from 16.80 back to the session low suggests options traders are pricing in a narrower tail-risk premium than the morning spike implied," said Priya Mehta, equity market structure analyst at Edgen.

The index opened at 16.33, rose 2.9% to the 16.80 high, then gave back all gains to close at the session low. The 15.74 close sits below the VIX's long-term average near 20, a level typically associated with subdued equity market volatility. The session range of 1.06 points between high and low represents the widest daily spread relative to the closing level in the past two weeks.

A VIX reading below 16 has historically coincided with low options-implied volatility across S&P 500 constituents, reducing the cost of portfolio hedges. The next catalyst for volatility direction will be the June 6 nonfarm payrolls release, where consensus expects 185,000 jobs added — a print significantly above or below that figure could drive the VIX back toward the 17-18 range.

This article is for informational purposes only and does not constitute investment advice.