French investment bank Societe Generale has issued a warning about a potential increase in market volatility despite the current calmness of the CBOE Volatility Index (VIX). The bank’s strategists point to another volatility gauge, the CBOE S&P 500 BuyWrite Index (VXZ), as a red flag. The VXZ, which measures the implied volatility of S&P 500 options sold against the index, has been trending lower, indicating a decrease in demand for protection against market downturns.
