The CBOE Volatility Index gapped up 5.33% to open at 16.40 on July 6 before sliding to close at 15.57, near the session low of 15.56. The gap-and-fade pattern suggests the initial volatility spike was not sustained through the trading day.
Back
VIX gaps 5.33% higher to 16.40 before fading to 15.57
The VIX gapped up 5.33% to open at 16.40 on July 6 before sliding to close at 15.57, near the session low of 15.56.
The session high of 16.50 was set shortly after the open, with the volatility index closing just one cent above the day's low, CBOE data show. The 5.33% opening gap was followed by a 5.1% decline from the open to the close, producing a bearish engulfing pattern on the daily chart.
The VIX ended the session at 15.57, below its opening level of 16.40, with the session range spanning 0.94 points between the high and the low. Volume data was not yet available.
The gap-and-fade pattern carries implications for options positioning. When the VIX opens more than 5% above the prior close and fails to hold those gains, it often indicates that the initial volatility premium was overpriced, potentially drawing sellers of protection into the market. Traders will watch whether the VIX holds below 16 in the coming sessions to confirm the opening gap as a false breakout.
This article is for informational purposes only and does not constitute investment advice.
© 2026 Edgen Powered by