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Tension running high in VIX

Traders bid up protection on the fear gauge as US stocks fall

Published Mon, Aug 10, 2015 · 09:50 PM

    New York

    SPECULATORS' appetite for protection from stock-market tempests has reached the highest in nine years.

    Options predicting a rise in the Chicago Board Options Exchange Volatility Index are the most expensive since 2006 relative to those betting on a drop. With gains narrowing, investors are hedging through calls on the VIX, which usually rises as the Standard & Poor's 500 Index falls.

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