By Krystal Hur

Wall Street is bracing for more whipsaws in the stock market.

The Cboe Volatility Index, which measures expectations for where the market is headed through S&P 500 options, jumped more than 28% to about 19 on Monday. That's on track for the biggest gain since the mid-December market selloff.

Traders are also jumping into bets that the VIX itself isn't done climbing.

Some of the most active trades on Monday are call options tied to the VIX jumping to 25 and 35, according to Cboe Global Markets data. Calls give traders the right to buy an asset at a certain price by a set date.

The volume of VIX calls on Monday was roughly double that of put options, which give investors the right to sell and tend to represent a bet that the underlying asset will fall in price.

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(END) Dow Jones Newswires

January 27, 2025 12:03 ET (17:03 GMT)

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