Possibility Productions

Aug. 4 (Bloomberg)–U.S. options prices rose most in four years that and volume rose to a record 35 million contracts, as investors encrypted to protect against greater stock market losses as stocks of the biggest losing streak sent deteriorating economic data, to buy the bull market since the beginning.

VIX, jumped Chicago Board Options Exchange volatility index is known, 35 percent to 31.66 at 4:15 pm in New York, the highest close since July 2010 and the biggest jump since February 27, 2007. “The index measures the costs of the use of the options as an insurance against a decline in the standard & poor’s 500 index, which fell 4.8 percent and had nine drop the bull market the largest since the beginning of March 2009.”"There is only is panic”, said Andrew Keene, an independent options trader at the CBOE, in an interview with Bloomberg television. “Everyone moves in cash.” “People are selling everything.

“Today’s rise is the largest, the gauge as 64 percent in February 2007, the most in its 21 year history-a jump, triggered by the largest defeat in four years, which out wiped about $600 billion in market value in one day. The S P 500 & 12 percent have gathered in the next seven months at 1,565.15 reach its peak, then 57 percent on a 12-year low collapsed their largest shares in March 2009.Global – day rout had since March 2009. A measure of global stocks fell more than 10 percent from the year’s high enter its first correction in may in more than a year amid concern about a recession. The MSCI all – country world collection index in developed and emerging markets slipped 4.1 per cent to 311.60, falling 13 percent from its high may 2′ it is fear “” it is fear, “Luke Rahbari, a VIX options trader at Stutland share LLC in Chicago, said in a telephone interview.

It is definitely much uncertainty on the market, whether talking about European government bonds over European banks, slows growth in the United States “More than 35 million options on equities, indexes and exchange traded funds moved today to US listed, according to Jim Binder, a spokesman for Chicago-based OCC, that compromise all trades himself.” Volume has the previous peak of 30.8 million on 6 May 2010, when a 20-minute-rout $862 billion from the value of U.S. stocks dropped before had a rest yourself, Binder said stocks, citing a preliminary tally surpassed.

Investors use options more than ever to protect against fluctuations who speculate on share price movements or bet that volatility will rise or fall. Volume can be about 8 percent to 4.2 billion this year for a ninth straight annual record, research firm TABB Group LLC said in a report last month to rise. “Freaked out’” people freaked out, and they should have,”said Henry Schwartz, President of the trade alert LLC, a New York provider options market data and analysis, in a telephone interview.” “It is impressive because it shows useful options are for the response to this kind of movements and adjusting exposure.”VIX futures volume on a one day rose 137,132 contracts include, CBOE said in a statement. This was more than double that four week moving average jumped the 60,666 contracts as the trace of options prices the most since February 2007, according to data from Bloomberg.

All VIX future expiring this year about 24 rose. August futures rose 25 percent to 27,45, highest level among all listed contracts, while September futures rose 19 percent to 25,90 January 8.1 percent went to 25.35. The most active VIX 25 was called for August options, followed by August index, which measures rose 30 Anrufe.VStoxx RisesEurope benchmark gauge of stock market volatility for a seventh day, his longest growing strips since October of 2008. VStoxx the cost of protection against a decline in the shares on the Euro STOXX 50 Index 17 percent increased today to 34.63 for its largest jump since March 16. The CBOE S & P 500 implied correlation index the best in its history jumped 20-month, up 15 percent to 72.51. The index used January 2012 options prices to measure traders expectations for how much S & P 500 stocks in tandem will move in the next 30 days.

S & P 500 moved in a 4.8 percent area between today’s intraday high and low deleted the most diverse since a 20-minute 6 rout may $2010 862 billion from the value of U.S. stocks, before prices recovered to. “Today’s swing is to triple the average 1.63 percentage-point range in the last four weeks.”People have three years is narrated by Washington and the media, that we are in a recovery, “said Doreen Mogavero, Chief Executive Officer of Mogavero Lee & co., in a telephone interview from the New York Stock Exchange.” “Now is to find out, that we are not only recover, but that growth slowed down, things are reverse, is it to a double jump, ten years rigorous, it completely disturbing to the average investor.”

-With the help of Victoria Taylor in New York City. Publisher: Joanna Ossinger, Jeff Sutherland

The reporter on this story contact: Cecile Vannucci in Amsterdam at cvannucci1@bloomberg.net; Jeff Kearns in New York City at the jkearns3@bloomberg.net

The editor responsible for this story contact: Nick Baker at nbaker7@bloomberg.net

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