he Fear Gauge Just Dropped 12%. Here is What to Do.
In this brief market commentary, Mike Milligan outlines the dramatic intra‑week movement of the CBOE Volatility Index (VIX) over a short trading week. The VIX opened at 14.92, spiked to 16.34 on Tuesday, fell to 15.20 on Wednesday, and closed the week at 14.53, representing a 2.61% weekly decline. However, the key focus is the 12.36% collapse from Tuesday’s peak to Thursday’s trough within 48 hours. Milligan interprets this rapid drop—especially as it occurs heading into a holiday weekend—as a signal that option sellers are pricing risk out of the market, indicating a willingness to underwrite downside protection at cheaper premiums. The commentary suggests that this pricing behavior reflects a professional community’s assessment of lower near‑term market risk.
