VIX slides to lowest level since 2007, while extends from manufacturing

April 15, 2011, 6: 31 pm EDT by Jeff Kearns and Joanna Ossinger

Benchmark for options on shares U.S. April 15 (Bloomberg) - dropped to a minimum of three years, a decline in equity small price swings and a manufacturing showing report in the New York area expanded in April at the fastest rate in a year.

The VIX, as it is called the Chicago Board Options Exchange Volatility Index, collapsed 5.8% to 15.32 at 4 p.m. in New York, having fallen as low as 14.92 intraday. Is the lowest level of closure since July 2007, a month before BNP Paribas SA, the largest bank France, prohibits withdrawals of funds belonging to sub-prime loans, intensification of the financial crisis.Price swings are reduced stockpiles, a situation which tends to reduce the value of the derivatives actions. The VIX measure the cost of the use of options such as insurance against declines in the standard & poor 500 Index, which moved in a range of 0.7% between today high and low. The average intraday swing of 10 days amounted to 0.9%. S & P 500 price swings hit a maximum of six months of 2.5 per cent on March 16. Earthquake of 11 March at the Japan stimulated a slowdown in the three days of 3.6% of the S & P 500. "" The market does was not moving since the situation of the Japan, "said Jeremy Wien, head of the VIX options traded at Peak6 Capital Management LLC in Chicago. "We tested 1 300 yesterday and come right back" on the S & P 500. The S & P 500 closed at 1,319.68 today, up 0.4%. He fell 0.6 percent this week. The VIX has averaged approximately 20.4 in life for two decades.In March, the Federal Reserve Bank of New York General economic index increased from 21.7 to 17.5. Economists projected a reading of 17, based on the median of forecasts in a Bloomberg News survey. Numbers greater than zero expansion factory of signal in the Index of State of the Empire, which covers New York, Northern New Jersey and Southern Connecticut.

-With the help of Timothy Homan in Washington. Editors: Stephen Kleege, Nick Baker

To contact the reporters on this story: Jeff Kearns in New York at jkearns3@bloomberg.net. Joanna Ossinger in New York at the jossinger@bloomberg.net

To contact the responsible editor of the story: Nick Baker at the nbaker7@bloomberg.net

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